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Landowner

Good faith
Becomes owner of the materials but he
must pay for their value
XPN: When they can be removed
without injury to work done; In such a
case, the OM can remove them
Bad faith
Becomes the owner of the materials +
Liable for damages

Owner of the Materials


Good faith
(1) Entitled to reimbursement provided he does not
remove them; (2) Entitled to removal provided no
substantial injury is caused
Good faith
Remove the materials with or without damage to work
done + damages; If he does not remove them, collect
payment for value of materials + damages
Bad faith

Good faith
Acquires the materials without paying
Loses his materials without indemnity; Loses his right
for their value; Entitled to
of removal; Liable for consequential damages when
consequential damages when the
his materials are of inferior quality
materials are of inferior quality
Bad faith
Bad faith
Same as though both had acted in good faith
Landowner
Good faith
Option 1: Buy whatever has been built,
planted, or sown after payment of the
indemnity which includes necessary, useful
(Art. 546) and in the proper case, luxurious
expenses (Art. 548)
Option 2: Sell the land to BP or to rent the
land to S, unless the value of the land is
considerably more than that of the building
or trees.
Entitled to: (1) Remove whatever has been
built, planted, or sown only when the other
party fails to pay for the land; (2) Eject the
other party from the land only when the
other party fails to pay for the rent
Landowner
Good faith
Option 1: Gets whatever has been
built, planted, or sown without
paying indemnity (Art. 449) except to
pay the necessary expenses for the
preservation of the land (Art. 452) +
entitled to damages (Art. 451)
Option 2: Sell the land to BP or to
rent the land to S, regardless of
valuation + entitled to damages
(Art. 451)
Option 3: Demand the removal or
demolition of the work, planting or
sowing done at the expense of BPS
(Art. 450) + entitled to damages (Art.
451)
Bad faith

Builder/Planter/Sower
Good faith
Entitled to: (1) Reimbursement for all the
necessary and useful expenses incurred; and
(2) Retain both the land and improvements
until full reimbursement is made; (3) Remove
or demolish improvement at its own expense
provided it does not cause substantial injury
Obliged to: (1) Purchase the land at fair
market value at the time of payment
provided that the value of the land is not
considerably more than that of the building
or trees; otherwise, the land owner may
remove the improvements; (2) Pay the proper
rent if the value of the land is considerably
more than that of the building or trees;
otherwise, the land owner may eject the
other party from the land
Builder/Planter/Sower
Bad faith

(1) Loses whatever has been built, planted or sow


without right to indemnity and retention (Art. 449);
liable to pay damages; (3) Entitled only to
reimbursement for the necessary expenses of
preservation of the land

Obliged to: (1) Pay for the land at fair market valu
the time of payment; or (2) Pay the proper rent; and
Pay the damages

Obliged to: (1) Remove or demolish work done at


builders own expense; (2) Pay the damages

Good faith
Remove the materials with or without damage to w
Buy the improvements + Liable for
done + damages; If he does not remove them, coll
damages
payment for value of improvements + damages
Bad faith
Bad faith
Same as though both had acted in good faith

Landowner (LO)
Good faith

Option 1: Buy
improvements after
payment of the indemnity
to BPS; Subsidiarily liable
to OM for the materials

Option 2: Sell the land to


BP or to rent the land to
S, unless the value of the
land is considerably more

Good faith
Option 1: Buy
improvements after
payment of the indemnity
to BPS; Without being
subsidiarily to OM for the
materials
Option 2: Sell the land to
BP or to rent the land to
S, unless the value of the
land is considerably more
Good faith
Entitled to damages from
BPS and OM in any case
with an option to: (1) Get
the materials without
paying indemnity except
to pay the necessary
expenses for the
preservation of the land
to BPS; or (2) Sell the
land to BP or to rent the
land to S, regardless of
valuation; (3) Demand the
removal or demolition of
the work, planting or
sowing done at the
expense of BPS.
Bad faith
Becomes owner of the
improvements but he must
pay: (1) their value and (2)

Builder/Planter/Sower
(BPS)
Good faith
Entitled to: (1)
Reimbursement from
the land owner; (2)
Retain both land and
improvements until full
reimbursement is made;
Primarily liable to pay
the value of materials to
OM
Obliged to: (1) Buy the
land provided that the
value of the land is not
considerably more than
that of the building or
trees; or (2) Pay the
proper rent if the value
of the land is
considerably more than
that of the building or
trees
Good faith
Entitled to: (1)
Reimbursement from
the land owner; (2)
Retain both land and
improvements until full
reimbursement is made;
(3) Keep the
improvements from OM
without paying
indemnity; Entitled to
damages from OM
Bad faith
(1) Loses materials
without right of
indemnity except for the
necessary expenses
for the preservation of
land unless land owner
sells the land; (2)
Obliged to pay the OM
for the value of the
materials; If insolvent,
land owner will not be
subsidiarily liable; (3)
Liable to pay damages
to land owner
Good faith
(1) Entitled to
reimbursement +
damages from land

Owner of the Materials


(OM)
Good faith
(1) Entitled to
reimbursement from BPS
who is primarily liable; (2) If
BPS is insolvent, OM shall
proceed against the land
owner who is subsidiarily
liable; (3) Entitled to
removal provided no
substantial injury is caused

(1) Entitled to
reimbursement from BPS
only; (2) Entitled to removal
provided no substantial
injury is caused

Bad faith

Whatever is the choice of


the land owner, the OM: (1)
Loses materials in favor of
BPS; (2) Has no right to
indemnity from BPS nor
land owner; and (3) Liable
to pay damages to BPS

Bad faith

(1) Entitled to
reimbursement from BPS
only; (2) Entitled to removal
provided no substantial
injury is caused; (3) No
action against land owner
but liable to pay damages
to land owner

Good faith
Entitled to reimbursement
+ damages from BPS who
is primarily liable; (2) If BPS

damages to BPS unless latter


decides to remove;
Subsidiarily liable to OM for
value of materials

Bad faith
Becomes owner of the
improvements but he must
pay: (1) their value and (2)
damages to BPS unless latter
decides to
remove the improvements
whether or not destruction
would be caused;
Bad faith

owner; (2) Entitled to


the absolute right of
removal whether or not
substantial injury is
caused + damages;
Primarily liable to pay
the value of materials to
OM
Good faith
(1) Entitled to
reimbursement +
damages from land
owner and OM; (2)
Entitled to the absolute
right of removal whether
or not substantial injury
is caused + damages;
Keeps the materials
without paying
indemnity
Bad faith

is insolvent, OM shall
proceed against the land
owner who is subsidiarily
liable; (3) Entitled to the
absolute right of removal
whether or not substantial
injury is caused + damages
Bad faith

(1) Loses materials in favor


of BPS; (2) Has no right to
indemnity from BPS nor
land owner; and (2) Liable
to pay damages to BPS

Good faith
(1) Entitled to
Option 1: Buy
Entitled to: (1)
reimbursement + damages
improvements after
Reimbursement from
from BPS who is primarily
payment of the indemnity
the land owner; (2)
liable; (2) If BPS is
to BPS; Subsidiarily to OM
Retain both land and
insolvent, OM shall proceed
for the materials
improvements until full
against the land owner who
reimbursement is made;
is subsidiarily liable; (3)
Option 2: Sell the land to
Obliged to pay OM for
Entitled to the absolute
BP or to rent the land to
the materials; Liable to
right of removal whether or
S, unless the value of the
pay damages to OM
not substantial injury is
land is considerably more
caused + damages
Good faith
Bad faith
Good faith
(1) Entitled to
Option 1: Buy
Entitled to: (1)
reimbursement + damages
improvements after
Reimbursement from
from BPS who is primarily
payment of the indemnity
the land owner; (2)
liable; (2) If BPS is
to BPS; Subsidiarily to OM
Retain both land and
insolvent, OM shall proceed
for the materials
improvements until full
against the land owner who
reimbursement is made;
is subsidiarily liable; (3)
Option 2: Sell the land to
Obliged to pay OM for
Entitled to the absolute
BP or to rent the land to
the materials; Liable to
right of removal whether or
S, unless the value of the
pay damages to OM
not substantial injury is
land is considerably more
caused + damages
Bad faith
Bad faith
Bad faith
All must be considered to have acted in good faith

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