RIGHT OF ACCESSION : Articles 440 – 475

What is the law or principle of the Right of Accession?

Art. 440. The ownership of property gives the right by accession to everything
which is PRODUCED thereby, or which is INCORPORATED or ATTACHED
thereto, either naturally or artificially.

o The RIGHT OF ACCESSION to a movable or immovable principal property

may be classified into:

1. Accession Discreta (right of accession to the fruits)

2. Accession Continua (right of accession to everything that is attached
or incorporated to the principal property)

B. ACCESSION CONTINUA: Arts. 445 – 456

RIGHT OF ACCESSION WITH RESPECT TO IMMOVABLE PROPERTY
– BY ATTACHMENT OR INCORPORATION o INDUSTRIAL

ACCESSIONS – a. Building b. Planting c. Sowing

Law on INDUSTRIAL ACCESSION:

Art. 445. Whatever is built, planted or sown on the land of another and the
improvements or repairs made thereon, belong to the owner of the land,
subject to the provisions of the following articles.

Legal Presumption of Industrial Accession in favor of landowner:

Art. 446. All works, sowing, and planting are presumed made by the owner and
at his expense, unless the contrary is proved.
o This legal presumption is applicable only if the owner of the land is known. If not,
then the legal presumption will not apply.

o This legal presumption is deemed as substantive evidence. It is up to the party

who wished to prove the contrary to present substantial evidence to rebut
this legal presumption. (U.S v. Genato, 15 Phil. 171)

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 DIFFERENT CASES AND LAWS ON INDUSTRIAL ACCESSION TO
IMMOVABLE PROPERTY:

CASE 1: RULES WHEN THE LANDOWNER IS THE BUILDER/PLANTER/SOWER

AND HE USES THE MATERIALS OF ANOTHER.
Art. 447. The owner of the land who makes thereon, personally or through
another, plantings, constructions or works with the materials of another,
shall pay their value; and, if he acted in bad faith, he shall also be obliged to
the reparation of damages. The owner of the materials shall have the right to
remove them only in case he can do so without injury to the work
constructed, or without the plantings, constructions or works being
destroyed. However, if the landowner acted in bad faith, the owner of the
materials may remove them in any event, with a right to be indemnified for
damages.
Read: Technogas Phil. Mfg. Corp. v. CA, G.R. No. 108894 February 10, 1997

ART. 447 – 1ST CASE

LANDOWNER IS BUILDER PLANTER AND HE USES THE MATERIALS
OF ANOTHER

LANDOWNER IS THE
BUILDER/PLANTER/SOWER OWNER OF THE MATERIALS

1. GOOD FAITH (1st sentence) 1. GOOD FAITH (1st, 2nd sen.)

- Can own the materials but must
pay for their value
2. BAD FAITH (1st, 3rd sentence)
- Can own materials but must pay
their value plus damages
3. GOOD FAITH
- Can own the materials without
paying their value and he is
entitled to consequential
damages due to defects of
materials
4. BAD FAITH (see Art. 453)
• Entitled to Payment of materials;
OR
• May Remove materials if No injury
will be caused to work or
construction
2. GOOD FAITH
o Payment of materials plus
Damages; OR o Absolute right of
Removal of Materials even if injury is
caused to work, or construction, plus
Damages
3. BAD FAITH
• Loses all his materials without right
to any indemnity (similar to builder

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 - Treat as if both are in good faith in bad faith)
(see #1)
4.BAD FAITH (see Art. 453)
- Treat as if both are in good faith (see
#1)
CASE 2: RULES when the BUILDER/PLANTER/SOWER BUILT/PLANTED ON
ANOTHER´S LAND USING HIS OWN MATERIALS . (Here, both landowner
and builder/planter are in GOOD FAITH )

Art. 448. The owner of the land on which anything has been built, sown or
planted in good faith, shall have the right to appropriate as his own the works,
sowing or planting, after payment of the indemnity provided for in articles 546
and 548, or to oblige the one who built or planted to pay the price of the land,
and the one who sowed, the proper rent. However, the builder or planter
cannot be obliged to buy the land if its value is considerably more than that of
the building or trees. In such case, he shall pay reasonable rent, if the owner of
the land does not choose to appropriate the building or trees after proper
indemnity. The parties shall agree upon the terms of the lease and in case of
disagreement, the court shall fix the terms thereof.

INDEMNITIES to be paid by Landowner to Builder in Good faith if he opts to buy the

building or planting:

• Art. 546. Necessary expenses shall be refunded to every possessor; but

only the possessor in good faith may retain the thing until he has been
reimbursed therefor.

Useful expenses shall be refunded only to the possessor in good faith with
the same right of retention, the person who has defeated him in the
possession having the option of refunding the amount of the expenses or of
paying the increase in value which the thing may have acquired by reason
thereof.

• Art. 548. Expenses for pure luxury or mere pleasure shall not be refunded
to the possessor in good faith; but he may remove the ornaments with
which he has embellished the principal thing if it suffers no injury thereby,
and if his successor in the possession does not prefer to refund the amount
expended.

NOTE: ART. 448 also applies if both parties - landowner and builder or planter, are
in bad faith, their rights will be governed as if both are in good faith based on Art.
453.

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 • Article 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.

It is understood that there is bad faith on the part of the landowner

whenever the act was done with his knowledge and without opposition on
his part.

2nd CASE : BUILDER/PLANTER/SOWER BUILDS, PLANTS, SOWS

ON ANOTHER’S LAND USING HIS OWN MATERIALS (ART. 448
- BOTH PARTIES IN GOOD FAITH )

LANDOWNER is in Good FaithBUILDER/PLANTER/SOWER IS OWNER OF

MATERIALS & in GOOD FAITH (Arts. 448, 546, 548)

Options: 1. Entitled to receive payment for necessary &

1. To appropriate or acquire whatever has useful expenses, plus luxurious
expenses if been built, planted or sown after paying landowner
appropriates them indemnity which includes necessary • Has right of
retention over the land without expenses and useful expenses (Arts.
448 & need to pay rent until landowner pays the
546) indemnity.
• To appropriate luxurious improvement, 2. Can remove useful
improvements provided no injury is caused to principal thing provided ,
he refunds the expenses
• If the land owner does not appropriate the (Art. 548) luxurious
improvements, builder can remove the same provided there’s no injury
caused.
OR – 3. To buy the land if its value is not
considerably more than the value
of the building or plantings.

2. To oblige the builder/planter/sower 4. If the value of land is cons.

more, he cannot to pay the price of the land, and the one be obliged
to buy the land, but he can pay who sowed, the proper rent. rent if
landowner does not choose to appropriate the b/p.

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 5. If he cannot pay the value of the land,
• However, the landowner cannot oblige landowner can require
him to remove the b/p.
the builder or planter to buy the land if 6. If he cannot pay the rent, the
landowner can its value is considerably more than the eject him from
the land. building or planting.

NOTA BENE:

• Art. 448 gives the Landowner only two Options he must choose from:
(1) to sell his land to builder or; (2) buy the building of builder in good faith.

• Landowner cannot refuse to elect an option in case of Art. 448.

• The right to choose is given to landowner and Not to the Builder or Planter in
Good Faith. Reasons for this:
1. Landowner´s right is older.
2. Landowner is owner of the principal property and by principle of accession
(i.e. accession industrial) he can own the accessory.
• Status and Rights of Parties Before Landowner Makes the Choice:
1. Neither builder in good faith nor landowner can oust each other.
2. If landowner opts to buy the building, builder has right of retention, as
ownership of the building is transferred only after landowner pays.
3. If landowner fails to pay, builder can sue him for collection of sum of money.

• Price to be Paid:
o If the landowner elects to sell the land where the building or work or planting
stands, the price is fixed at the prevailing market value at the time of payment .
(Ballatan v. CA 302 SCRA 34, 1995).
o Or, in case of reimbursement to the builder in good faith for building &
improvements, current market value should be paid. (Pecson v. CA, 61
SCAD 385, 1995)

• The land owner cannot compel the sower to buy the land. Land owner can either
buy the improvement, or demand rental from sower.

• If the value of the land is considerably higher than the value of the improvement,
then the landowner can only choose between buying the improvement, or
demanding rental from the builder/planter/sower.

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• If the landowner elects to sell the land, but the builder in good faith cannot pay
the value of the land, will the landowner now be deemed automatically as
owner of the building?

Answer: No, the Landowner does not automatically becomes the owner of the
building if Builder in Good Faith fails to pay the value for the land.
No automatic accession. Art. 448 does not provide this. Ownership of the
building as accessory passes to the landowner, only upon payment of the
indemnity.

• What remedies are available to the landowner if he elects to sell the land, but
the builder in good faith cannot pay the value of the land ?

1. They can enter into a lessor – lessee relations. In case of disagreement, the
court may fix the terms. (Miranda v. Fadullon, 51 OG 6226)

2. The landowner can have the building or work removed. (Ignacio v. Hilario,76
Phil. 605)

3. The landowner may consider the price of his land as an ordinary money debt.
o Landowner may file recovery for sum of money against Builder in Good
Faith.
o Judgment may be executed by levying on the building and the land, which
may be sold at public auction. (Tayag et al v. Yuseco et al, 97 Phil. 712)
o The landowner can then keep the value of the land from auction sale; the
rest will be turned over to the builder in good faith.
o In case of deficiency, Builder in Good Faith will suffer the loss. (Bernardo v.
Bataclan, 66 Phil. 598)

• Landowner’s choice is irrevocable. If the landowner opts to get the building, but
cannot pay for it, he cannot afterwards opt to sell the land to the builder in good
faith. The builder in good faith can levy an execution on the landowner´s
property to pay the monetary obligation or indemnity. (Tayag v. Yuseco, 97
Phil. 712)

• Read: Ophelia Tuatis v. Visminda Escol, G.R. No. 175399, October 27, 2009;
Depra v. Dumlao, GR L-57348, May 16, 1985

CASE 3: RULES IF LANDOWNER IN GOOD FAITH IF BUILDER or PLANTER,

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 IS IN BAD FAITH (Art. 450 with Arts. 449, 451, 452; Arts. 546, 548)

Article 450. The owner of the land on which anything has been built, planted or
sown in bad faith may demand the demolition of the work, or that the planting
or sowing be removed, in order to replace things in their former condition at
the expense of the person who built, planted or sowed; or he may compel the
builder or planter to pay the price of the land, and the sower the proper rent.

Article 450 is applied in relation to the following laws:

• Article 449. He who builds, plants or sows in bad faith on the land of
another, loses what is built, planted or sown without right to indemnity.

• Article 451. In the cases of the two preceding articles, the landowner is
entitled to damages from the builder, planter or sower.

• Article 452. The builder, planter or sower in bad faith is entitled to

reimbursement for the necessary expenses of preservation of the land.

Note: Builder or Planter who is owner of materials and in Bad Faith, must pay
Damages, in addition to suffering any of the penalties of demolition or removal, or of
losing all improvements made, or for builder/planter to pay for the land, or, for sower
to pay rent.

BUILDER/PLANTER/SOWER in BAD FAITH, BUILDS, PLANTS,

SOWS
ON ANOTHER’S LAND USING HIS OWN MATERIALS ,
WHILE LANDOWNER IS IN GOOD FAITH (ARTS. 449, 450, 451, 452;
Arts. 546, 548 )
BUILDER/PLANTER/SOWE
LANDOWNER IN GOOD R (BPS) IS OWNER OF
FAITH MATERIALS & IN BAD FAITH
1. Landowner can get the a.)Loses what has been built,
building, work, or standing planted, sown plus damages
crops without indemnity b.)Can be required by landowner to
except for preservation of demolish or remove the b/p/s and
land expense, or luxurious restore things in their former
expenses if he decides to condition at the expense of the

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 acquire the lux ornaments, BPS, plus pay damages (Arts.
plus damages (Arts. 449, 450, 451)
451, 452, 548) c.) To pay for value of land whether
or not it is considerably higher
than the building or plantings,
2. Landowner can demand plus pay damages (Arts. 450, 451)
from B/P in bad faith to
d.)To pay rent for the use of the land
demolish building or remove if the landowner so chooses plus
plants and restore to former pay damages .
condition at builder’s or
e.)Entitled to reimbursement for
planter s expense, plus necessary expenses for
damages (Arts. 450, 451) or; preservation of land, but has no
right of retention of land. (Arts.
3. Oblige B/P to buy the land 452)
even if it’s value is f.) Not entitled to refund for useful
considerably higher than the expenses and cannot remove the
value of the crops or useful improvements even if no
injury will be caused. (Arts. 546;
building, or the sower to pay
449)
rent, plus damages
g.) Not entitled to reimbursement for
(Arts. 450, 451) luxurious expenses except when
the land owner acquires the
luxurious improvements valued at
a time landowner enters
possession (Arts. 548)
h.)Can remove luxurious
improvements if no injury is
caused & landowner won’t retain

Sources:
1. Notes from Property Law annotated book by J. Paras
2. Notes from Review Lecture of ADM Law of Prof. Balane by Dot