A Matter of Faith: Remedies of a Property Owner in Good Faith against the Builder, Planter, and Sower
Land, particularly in the Philippines, is one of the safest investments as it rarely depreciates, and its value can sometimes grow at an exponential rate. Many individuals buy this type of property with the intent of buying low and selling high later without ever using them. But as with any investment, it has risks. For example, if they are left unattended for long periods, property owners may find that something is built, planted, or sown upon their land.
What then is the redress of a property owner in-good-faith should he discover that there is a construction, plants, or crops on his land? First, we must determine whether the builder, planter or sower is in good faith; that is, whether he had reasonable belief that under the circumstances he was a rightful owner, or that he was unaware of a defect in his title or was either allowed to build, plant, or sow. Should he wittingly make any actions when he knew that he was not the rightful owner or had no right to build, plant, or sow, he will be deemed to be in bad faith.
Assuming that all the parties are in good faith, what happens? The landowner has the option to either a) sell the land to the builder, planter, sower or b) acquire the improvements upon paying an indemnity at original cost of improvements (for non-ornamental) or increase in value of the whole (if ornamental). Remember, the landowner has the right to choose the options first. What of the builder in good faith? He has a right to retain until he is indemnified and may not be required to pay rent.
Should the builder, planter, or sower be in bad faith—that is, he knew he had no right upon the property—he can lose all the improvements without right to indemnity and pay damages to the landowner; however, he does have a right to recover necessary expenses for preservation of the property. Note that while he has a right to recover necessary expenses, he does not have the right to hold property pending payment.
Property, especially land, is expensive and bought with great effort. It is unsurprising that parties go to great lengths to protect them. To help in the protection of your hard-earned properties and investments visit Batocabe & Partners at https://batocabeandpartners.com to learn more about your rights.
