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Rules On BPS

The document outlines different rules regarding ownership of fruits, crops, and improvements on land when the planter/builder and landowner are different parties. It addresses scenarios when the planter/builder acts in good or bad faith, and the rights and responsibilities of each party.

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Princess Faith
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0% found this document useful (0 votes)
58 views19 pages

Rules On BPS

The document outlines different rules regarding ownership of fruits, crops, and improvements on land when the planter/builder and landowner are different parties. It addresses scenarios when the planter/builder acts in good or bad faith, and the rights and responsibilities of each party.

Uploaded by

Princess Faith
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Rules When the Planter and Owner of the Land are Different

Gathered Fruits
Planter Landowner
Keeps fruits before possession is No necessity to reimburse the planter for
Planter in good fait legally interrupted. (Art. 544(1), the expenses since the planter retains
NCC) the fruits. (Art. 544(1), NCC)

Reimbursed for expenses for production,


Planter in bad faithgathering and preservation. (Art. 443, Owns fruits provided he pays planter
expenses for production, gathering and
NCC) preservation. (Art. 443, NCC)
Standing Crops

Planter in good fait Reimbursed for expenses, for Owns fruits provided he pays planter
production, gathering, and preservation. expenses for production, gathering, and
(Art.443, NCC) preservation. (Art. 443, NCC)

Loses what is built, planted, or sown


without the right to indemnity. (Art 449,
Planter in bad faith NCC) Owns fruits. (Art. 449, NCC)
Entitled to reimbursement for the
necessary expenses of preservation of the
land. (Art. 452, NCC)
Rules When the Owner of the Land is NOT the Builder, Planter, or Sower
Landowner BPS and Owner of Materials

If the Landowner:
1. Acquires the improvements after paying
indemnity, Builder, Planter, or Sower has the
right to retain the thing (and cannot be required
to pay rent) until indemnity is paid; (Art. 546,
NCC)
He can either: (Art. 448, NCC) (1992, 1996, 2000
BAR) 2. If the useful improvements can be removed
1. Acquire improvements after paying indemnity without damage to the principal thing, the
Good faith for: Builder, Planter, or Sower may remove them; or
a. Necessary expenses; and
b. Useful expenses which could either be: XPN: Unless the person who recovers the
1. Original costs of improvements; or possession exercises the other. (Arts. 547 & 447,
2. Increase in the value of the whole. (Arts. NCC)
443 & 546, NCC) or
2. Sell the land to builder or planter or collect rent 3. Sells the land, Builder or Planter cannot be
from sower obliged to buy the land if its value is
considerably more than that of the building or
XPN: unless the value of the land is considerably trees. In such a case, he shall pay reasonable
greater than the building etc., in which case, the rent.
builder and planter shall pay rent.
The parties shall agree upon the terms of the lease The parties shall agree upon the terms of the lease
and in case of disagreement, the court shall fix the and in case of disagreement, the court shall fix the
terms thereof terms thereof. (Art. 448, NCC)

1. The landowner can either:


a. Acquire improvements without paying
indemnity and collect damages. (Arts. 445,
449 & 451)

b. Order the demolition of work or restoration


to former condition and collect damages in
Good faith both cases (Art. 450, NCC); or

c. Sell the land to builder and planter or rent it


to the sower and collect damages in both
cases. (Art. 450, NCC) (2008 BAR)

2. Pay necessary expenses for preservation. (Arts.


452 & 546, NCC)

1. Lose improvements without the right to be


indemnified (1996, 2000 BAR)
XPN: unless the latter sells the land. (Art. 449,
NCC)

Bad faith 2. Recover necessary expenses for


preservation of land without the right to
retain the thing until the indemnity is paid.
(Arts. 452 & 546, NCC)

3. Pay damages to landowner. (Art. 451, NCC)


1. Receive indemnity for improvements and
Good faith receive damages; or
2. Remove them in any event and receive
damages. (Arts. 454 & 447, NCC)

Acquires improvements after paying indemnity and


damages to builder, planter, or sower
XPN: unless the latter decides to remove. (Arts. 454 &
447, NCC)

He cannot compel the builder, planter, or sower to


Bad faith buy the land.

NOTE: Art. 447 of the NCC applies because if the


landowner knew that something was being built,
planted, or sown on his land by another and he did not
interpose any objection thereto, it is as if he was the
one building, planting, or sowing in bad faith on his
own land with materials belonging to another, using
the owner of the materials as his worker. (Rabuya,
2008)

Bad faith As though both acted in good faith (in pari delicto). (Art. 453, NCC)
Rules When the Owner of the Land, Builder, Planter, Sower, and Owner of the Materials are Differen
Persons
Landowner Builder, Planter, Sower Owner of Materials

Pay value of materials to its owner


without paying damages (Art. 455,
He shall answer subsidiarily for NCC) and if the landowner:
their value and only in the event
that the one who made use of them 1. Acquires the improvement,
has no property with which to pay. Builder, Planter, or Sower
(Art. 455, NCC) may demand from the 1. Collect value of materials
landowner the value of the primarily from builder,
He can either: materials and labor. (Art 455, planter, sower, subsidiarily
NCC) from landowner (Art. 455,
1. Acquire improvements after NCC); or
paying indemnity for: And he has the right to retain
the thing (and cannot be
a. Necessary expenses; required to pay rent) until 2. Remove the materials only if:
and indemnity is paid. (Art. 546, a. without injury to the
Good faith NCC) work constructed; or
b. Useful expenses which b. without the plantings,
could either be: If the useful improvements constructions, or works
can be removed without being destroyed. (Art.
i. Original costs of damage to the principal 447, NCC)
improvements; or thing, the possessor in good
faith may remove them,
ii. Increase in the value unless the person who NOTE: Landowner is subsidiarily
of the whole. (Art. recovers the possession liable only if he appropriates or
546 & 443, NCC) or exercises the other (Arts. 547 acquires the improvements.
& 447, NCC); or
2. Sell the land to builder and
planter or collect rent from 2. Sells the land or rents it,
sower Builder or Planter cannot be
obliged to buy the land if its
XPN: unless the value of the value is considerably more
land is considerably greater than that of the building or
than the building etc., in trees.
which case, the builder and
planter shall pay rent. In such a case, he shall pay
reasonable rent.
The parties shall agree upon
the terms of the lease and in The parties shall agree upon the
case of disagreement, the terms of the lease and in case of
court shall fix the terms disagreement, the court shall fix
thereof. (Art. 448, NCC) the terms thereof. (Art. 448, NCC)

Option to:
1. Acquire improvements
without paying indemnity
and collect damages; (Arts.
445 & 449, NCC)
2. Order the demolition of work
or restoration to former 1. Collect value of materials
condition and collect primarily from builder,
damages in both cases; (Art. planter, sower, subsidiarily
450, NCC) or from landowner; (Art. 455,
NCC) or
Good faith
3. Sell the land to builder and
planter or rent it to the 2. Remove materials in any ev
sower and collect damages in if builder, planter, sower
both cases. (Art. 450, NCC) acquired materials."
(2008 BAR)
4. Pay necessary expenses for
preservation; (Arts. 452 &
546, NCC) and
Option to:
1. Acquire improvements
without paying indemnity
and collect damages; (Arts.
445 & 449, NCC)

2. Order the demolition of work


or restoration to former 1. Collect value of materials
condition and collect primarily from builder,
damages in both cases; (Art. planter, sower, subsidiarily
450, NCC) or from landowner; (Art. 455,
NCC) or
Good faith
3. Sell the land to builder and
planter or rent it to the 2. Remove materials in any ev
sower and collect damages in if builder, planter, sower
both cases. (Art. 450, NCC) acquired materials."
(2008 BAR)

4. Pay necessary expenses for


preservation; (Arts. 452 &
546, NCC) and

5. Subsidiarily liable to owner


of materials.

1. Lose improvements without


right to be indemnified unless
the landowner sells the land;
(Art. 449, NCC)
2. Recover necessary expenses
Bad faith for preservation of land
without the right to retain the
thing until the indemnity is
paid; (Arts. 452 & 546, NCC)

3. Pay value of materials to its


owner plus damages; (Art. 455,
NCC) and

4. Pay damages to landowner.


(Art. 451, NCC)

If the Landowner:

1. Acquires the improvement,


Landowner can either: (Art. 448, Builder, Planter, or Sower
NCC) has the right to retain the
thing (and cannot be
1. Acquire improvements after required to pay rent) until
paying indemnity for: indemnity is paid. (Art. 546,
NCC)
1. Necessary expenses;
and If the useful improvements
can be removed without
2. Useful expenses which damage to the principal
could either be: thing, the possessor in good
faith may remove them (Art.
i. Original costs of 547, NCC)
improvements; or
Good faith ii. Increase in the XPN: unless the person who
value of the whole. recovers the possession
(Arts. 546 and 443, exercises the other (Art. 547,
If the Landowner:

1. Acquires the improvement,


Landowner can either: (Art. 448, Builder, Planter, or Sower
NCC) has the right to retain the
thing (and cannot be
1. Acquire improvements after required to pay rent) until
paying indemnity for: indemnity is paid. (Art. 546,
NCC)
1. Necessary expenses;
and If the useful improvements
can be removed without
2. Useful expenses which damage to the principal
could either be: thing, the possessor in good
faith may remove them (Art.
i. Original costs of 547, NCC)
improvements; or
Good faith ii. Increase in the XPN: unless the person who
value of the whole. recovers the possession
(Arts. 546 and 443, exercises the other (Art. 547,
NCC) NCC); or
3. Sell the land to builder and 2. Sells or rents it, Builder or
planter or collect rent from Planter cannot be obliged to
sower buy the land if its value is
considerably more than that
XPN: unless the value of the of the building or trees.
land is considerably greater
than the building etc., in which In such case, he shall pay
case, the builder and planter reasonable rent.
shall pay rent.
The parties shall agree upon
The parties shall agree upon the terms of the lease and in
the terms of the lease and in case of disagreement, the
case of disagreement, the court shall fix the terms
court shall fix the terms thereof. (Art. 448, NCC)
thereof.
Without indemnity to owner of
Without subsidiary liability for materials and collects damages
cost of materials. from him.

1. Loses materials without right


to indemnity (Art. 449, NCC);
and

2. Pays damages (Art. 451, NCC)


the builder, planter, or sower
would be considered merely
Bad faith an agent of the owner of
materials.

Therefore, the provisions of Art.


449 of the NCC will apply by
analogy. He is even liable for
damages. (Rabuya, 2008)

Option to:
1. Acquire improvements
without paying indemnity
and collect damages; (Arts.
445 & 449, NCC)

2. Order the demolition of work


Option to:
1. Acquire improvements
without paying indemnity
and collect damages; (Arts.
445 & 449, NCC)

2. Order the demolition of work


or restoration to former
condition and collect
damages in both cases; (Art.
450, NCC) or

3. Sell the land to builder and


Good faith planter or rent it to the
sower, and collect damages
in both cases; (Art. 450, NCC)

4. Has right to demand


damages from both; (Art.
451, NCC)

5. Pay necessary expenses for


preservation; (NCC, Art. 452
& 546) and
6. Not subsidiarily liable to the
owner of the materials
because as for him, the two
acted in bad faith. (De Leon,
2006)

1. Lose improvements without


right to be indemnified
unless the landowner sells
the land; (Art. 449, NCC) 1. Recover value from Builde
Planter, Sower (in pari
2. Recover necessary expenses delicto);
for preservation of land
without the right to retain 2. If Builder, Planter, Sower
the thing until the indemnity acquired improvements,
is paid; (Arts. 452 & 546, remove the materials only i
NCC) without injury to the work
constructed, or without the
Bad faith
3. Pay the value of the plantings, constructions or
materials to the owner of the works being destroyed; (Art
materials.; and 447, NCC)
Since both the owner of the
materials and the builder, 3. No action against landowne
etc. acted in bad faith, as and
between them, they are
treated as having both acted 4. May be liable to the landow
in good faith. (De Leon, 2006) for damages. (Art. 451, NCC

4. Pay damages to landowner.


(Art. 451, NCC)
1. Lose improvements without
right to be indemnified
unless the landowner sells
the land; (Art. 449, NCC) 1. Recover value from Builde
Planter, Sower (in pari
2. Recover necessary expenses delicto);
for preservation of land
without the right to retain 2. If Builder, Planter, Sower
the thing until the indemnity acquired improvements,
is paid; (Arts. 452 & 546, remove the materials only i
NCC) without injury to the work
constructed, or without the
Bad faith
3. Pay the value of the plantings, constructions or
materials to the owner of the works being destroyed; (Art
materials.; and 447, NCC)
Since both the owner of the
materials and the builder, 3. No action against landowne
etc. acted in bad faith, as and
between them, they are
treated as having both acted 4. May be liable to the landow
in good faith. (De Leon, 2006) for damages. (Art. 451, NCC

4. Pay damages to landowner.


(Art. 451, NCC)

If he pays the owner of the


materials, plants or seeds:
1. Collect value of materials
1. He may demand from the primarily from builder,
landowner the value of the planter, sower, subsidiarily
materials and labor (Art 455, from landowner (Art. 455,
NCC) and shall also be NCC); or
Good faith
obliged to the reparation of
damages (Art. 447, NCC); or 2. Remove the materials in an
event, with the right to be
2. Remove the materials in any indemnified for damages.
event, with the right to be (Art. 447, NCC)
indemnified for damages.
(Arts. 454 & 447, NCC)

1. Acquires improvements
after paying indemnity and
damages

XPN: unless the latter


Bad faith decides to remove; (Arts.
454, 447, & 443); and

2. Cannot compel builder,


planter and sower to buy
land.
1. Acquires improvements
after paying indemnity and
damages
XPN: unless the latter
Bad faith decides to remove; (Arts.
454, 447, & 443); and

2. Cannot compel builder,


planter and sower to buy
land.

If he pays the owner of the


materials, plants or seeds:

1. He may demand from the


landowner the value of the
materials and labor (Art. 455,
NCC) and shall also be
Good faith obliged to the reparation of
damages (NCC, Art. 447); or

2. Remove the materials in any


event, with the right to be
indemnified for damages.
(Arts. 454 & 447, NCC)

1. Loses materials without


1. Acquires improvements after right to indemnity (Art. 449
paying indemnity and NCC); and
damages
2. Pays damages. (Art. 451,
XPN: unless the builder, NCC)
planter or sower decides to
Bad faith
remove (Arts. 454, 447 & 443, The builder, planter or sowe
NCC); and would be considered merely
agent of the owner of materia
2. Cannot compel builder, Therefore, the provisions of A
planter and sower to buy 449 of the NCC will apply by
land. analogy. He is even liable fo
damages. (Rabuya, 2008)

1. Collect value of materials


primarily from builder,
planter, sower, subsidiarily
from landowner (Art. 455,
NCC); or
Good faith
2. Remove the materials in an
event, with the right to be
indemnified for damages.
1. Collect value of materials
primarily from builder,
planter, sower, subsidiarily
from landowner (Art. 455,
NCC); or
Good faith
2. Remove the materials in an
event, with the right to be
indemnified for damages.
(Art. 447, NCC)

The owner of the land shall Pay value of materials to its owner
answer subsidiarily for their value (Art. 455, NCC) and
and only in the event that the one If the landowner:
who made use of them has no
property with which to pay (Art. 1. Acquires the improvement,
455, NCC); and Builder, Planter, or Sower may
demand from the landowner
Landowner can either: (Art. 448, the value of the materials and
NCC) labor. (Art 455, NCC)

1. Acquire improvements after And he has the right to retain


paying indemnity for: the thing (and cannot be
required to pay rent) until
1. Necessary expenses, indemnity is paid. (Art. 546,
and NCC)

2. Useful expenses which If the useful improvements


could either be: can be removed without
damage to the principal thing,
i. Original costs of the possessor in good faith
Bad faith
improvements may remove them
ii. Increase in the value XPN: unless the person who
of the whole. (Arts. recovers the possession
546 & 443, NCC) exercises option 2; (Arts. 547
& 447, NCC)
2. Sell the land to builder and
planter or collect rent from 2. Sells or rents it, Builder or
sower. Planter cannot be obliged to
buy the land if its value is
XPN: unless the value of the considerably more than that
land is considerably greater of the building or trees.
than the building etc., in which
case, the builder and planter In such a case, he shall pay
shall pay rent. reasonable rent.

The parties shall agree upon The parties shall agree upon
the terms of the lease and in the terms of the lease and in
case of disagreement, the case of disagreement, the
court shall fix the terms court shall fix the terms
thereof. thereof. (Art. 448, NCC)
The owner of the land shall Pay value of materials to its owner
answer subsidiarily for their value (Art. 455, NCC) and
and only in the event that the one If the landowner:
who made use of them has no
property with which to pay (Art. 1. Acquires the improvement,
455, NCC); and Builder, Planter, or Sower may
demand from the landowner
Landowner can either: (Art. 448, the value of the materials and
NCC) labor. (Art 455, NCC)

1. Acquire improvements after And he has the right to retain


paying indemnity for: the thing (and cannot be
required to pay rent) until
1. Necessary expenses, indemnity is paid. (Art. 546,
and NCC)

2. Useful expenses which If the useful improvements


could either be: can be removed without
damage to the principal thing,
i. Original costs of the possessor in good faith
Bad faith improvements may remove them
ii. Increase in the value XPN: unless the person who
of the whole. (Arts. recovers the possession
546 & 443, NCC) exercises option 2; (Arts. 547
& 447, NCC)
2. Sell the land to builder and
planter or collect rent from 2. Sells or rents it, Builder or
sower. Planter cannot be obliged to
buy the land if its value is
XPN: unless the value of the considerably more than that
land is considerably greater of the building or trees.
than the building etc., in which
case, the builder and planter In such a case, he shall pay
shall pay rent. reasonable rent.

The parties shall agree upon The parties shall agree upon
the terms of the lease and in the terms of the lease and in
case of disagreement, the case of disagreement, the
court shall fix the terms court shall fix the terms
thereof. thereof. (Art. 448, NCC)

Bad faith Same as though both acted in good faith (in pari delicto). (Art. 453, NCC)
he Materials are Different
Owner of Materials

1. Collect value of materials


primarily from builder,
planter, sower, subsidiarily
from landowner (Art. 455,
NCC); or
2. Remove the materials only if:
a. without injury to the
work constructed; or
b. without the plantings,
constructions, or works
being destroyed. (Art.
447, NCC)
NOTE: Landowner is subsidiarily
liable only if he appropriates or
acquires the improvements.

1. Collect value of materials


primarily from builder,
planter, sower, subsidiarily
from landowner; (Art. 455,
NCC) or

Remove materials in any event


if builder, planter, sower
acquired materials."
1. Collect value of materials
primarily from builder,
planter, sower, subsidiarily
from landowner; (Art. 455,
NCC) or

Remove materials in any event


if builder, planter, sower
acquired materials."
1. Loses materials without right
to indemnity (Art. 449, NCC);
and

2. Pays damages (Art. 451, NCC)


the builder, planter, or sower
would be considered merely
an agent of the owner of
materials.

Therefore, the provisions of Art.


449 of the NCC will apply by
analogy. He is even liable for
damages. (Rabuya, 2008)
1. Recover value from Builder,
Planter, Sower (in pari
delicto);
2. If Builder, Planter, Sower
acquired improvements,
remove the materials only if
without injury to the work
constructed, or without the
plantings, constructions or
works being destroyed; (Art.
447, NCC)

. No action against landowner;


and

May be liable to the landowner


for damages. (Art. 451, NCC)
1. Recover value from Builder,
Planter, Sower (in pari
delicto);

2. If Builder, Planter, Sower


acquired improvements,
remove the materials only if
without injury to the work
constructed, or without the
plantings, constructions or
works being destroyed; (Art.
447, NCC)

. No action against landowner;


and

May be liable to the landowner


for damages. (Art. 451, NCC)

1. Collect value of materials


primarily from builder,
planter, sower, subsidiarily
from landowner (Art. 455,
NCC); or

2. Remove the materials in any


event, with the right to be
indemnified for damages.
(Art. 447, NCC)
1. Loses materials without
right to indemnity (Art. 449,
NCC); and

2. Pays damages. (Art. 451,


NCC)

The builder, planter or sower


would be considered merely an
gent of the owner of materials.
herefore, the provisions of Art.
449 of the NCC will apply by
analogy. He is even liable for
damages. (Rabuya, 2008)

1. Collect value of materials


primarily from builder,
planter, sower, subsidiarily
from landowner (Art. 455,
NCC); or

2. Remove the materials in any


event, with the right to be
indemnified for damages.
1. Collect value of materials
primarily from builder,
planter, sower, subsidiarily
from landowner (Art. 455,
NCC); or

2. Remove the materials in any


event, with the right to be
indemnified for damages.
(Art. 447, NCC)
,.

Art. 453, NCC)

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