Dear PAO,

I have inherited a parcel of land in the province from my parents. Since I am working as an OFW, I seldom go home to our province. Just this year, I learned that my uncle built a small house on my land without my permission. He knew that the land belongs to me. He now refuses to vacate and told me that he will only leave if I pay the expenses he incurred in building the house. Is he correct?

Angie

Dear Angie, Please be informed of Article 449 of the Civil Code which states that –

“Art. 449. He who builds, plants or sows in bad faith on the land of another, loses what is built, planted or sown without right to indemnity.”

Moreover, Article 450 of the said Code will apply. It provides:

“Art. 450. The owner of the land on which anything has been built, planted or sown in bad faith may demand the demolition of the work, or that the planting or sowing be removed, in order to replace things in their former condition at the expense of the person who built, planted or sowed; or he may compel the builder or planter to pay the price of the land, and the sower the proper rent.”

Furthermore, Article 451 of the same Code mandates that –

“Art. 451. In the case of the two preceding articles, the landowner is entitled to damages from the builder, planter or sower.”

Based on the above-stated law, a builder in bad faith is not entitled to indemnity for the improvements he or she introduced on the land. As a builder in bad faith, he or she loses his or her right to such improvements. In fact, the owner of the land even has the option to demand demolition of the improvements at the expense of the builder in bad faith. Moreover, the owner of the land is entitled to collect damages from the builder in bad faith.

In the case of Tan Queto v. Court of Appeals (GR L-35648, Feb. 27, 1987, Ponente: Associate Justice Edgardo Paras), the Supreme Court held:

“Please note further that the difference between a builder (or possessor) in good faith and one in bad faith is that the former is NOT AWARE of the defect or flaw in his title or mode of acquisition while the latter is AWARE of such defect or flaw x x x x”

Considering that your uncle knows that the land belongs to you when he introduced improvements on your land, he can be considered as a builder in bad faith. Therefore, he loses his right to the house he constructed on your land without any right to indemnity. You may even demand its demolition at your uncle’s expense. Alternatively, you may ask your uncle to pay the price of the land if you so wish. In either case, you are entitled to recover damages from your uncle arising from the unauthorized construction on your land.

We hope that we were able to answer your queries. Please be reminded that this advice is based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.