Article 448
ELI5— what this means for you
If a person builds, plants, or sows on another's land in good faith, the landowner can either: (a) appropriate the improvement by paying indemnity, or (b) require the builder/planter to buy the land. This is the basis of the 'builder in good faith' doctrine.
Key point
A good faith builder on another's land has rights — the landowner cannot simply demolish without paying indemnity.
Official text — RA 386
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. (361a)
Source: lawphil.net (RA 386 as amended)
Related
RELATED RIGHTS
Legal disclaimer: BatasKo provides general legal information, not legal advice. For advice on contracts, property rights, obligations, or civil damages, consult a licensed Filipino lawyer or the Public Attorney's Office (PAO) at pao.gov.ph.