Dear Attorney,
I was given permission by a landowner to build a house on their property. The building permit, occupancy certificate, and utility bills are under my name. If the landowner decides to reclaim the land and ask me to leave, do I have the right to demand payment for the house I built?
Thank you.
- Concerned Builder
Insights
In the Philippines, this situation falls under the legal concept of accession under the Civil Code. Specifically, Article 448 of the Civil Code addresses instances where a person builds on land that they do not own. The article outlines that if a person builds a structure on someone else's property with the landowner's consent, certain remedies are available, but the landowner cannot simply evict the builder without providing just compensation.
Accession – This refers to the principle that whatever is built on or attached to the land belongs to the landowner. However, the builder has certain rights, especially if the construction was done in good faith.
Rights of the Builder in Good Faith – When a builder in good faith constructs on someone else's land, the landowner may opt to pay the value of the improvements or reimburse the cost of materials and labor. The landowner can also allow the builder to purchase the land if both parties agree. If the builder does not wish to sell the improvements, the landowner has the right to appropriate the property after compensating the builder.
Landowner’s Rights – If the landowner wants to reclaim the land, they have two options: either pay the value of the improvements or force the builder to remove the structure if no compensation is agreed upon. However, this is only applicable if the builder is acting in bad faith, i.e., constructing without permission.
In this case, if the builder acted with the landowner's consent, they are considered in good faith, entitling them to reimbursement or the option to buy the land.
These legal remedies protect both parties, ensuring fairness while recognizing the landowner’s ownership and the builder’s investment.