Sammy and Santi are cousins who separately inherited two (2) adjoining lots from their grandfather. Sammy is based overseas but wants to earn income from his inherited land, so he asked a local contractor to build a row of apartments on his property which he could rent out. The contractor sent him the plans and Sammy noticed that the construction encroached on a part of Santi’s land but he said nothing and gave approval to construct based on the plans submitted by the local contractor. Santi, based locally, and who loved his cousin dearly, did not object even if he knew of the encroachment since he was privy to the plans and visited the property regularly. Later, the cousins had a falling out and Santi demanded that the portion of the apartments that encroached on his land be demolished.
Can Santi successfully file legal action to require the demolition? (5%)
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No, Santi cannot successfully file a legal action to require the demolition. Under Article 453 of the Civil Code, where both the builder and the landowner act in bad faith, their rights are determined as though both acted in good faith.
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Quick check
Under Article 453 of the Civil Code, when is bad faith attributed to the owner of the land?
Bad faith is attributed to the landowner when construction occurs with his knowledge and without his opposition.
When both the builder and the landowner act in bad faith under Article 453, how are their legal rights determined?
Under Article 453, the bad faith of both parties neutralizes each other, treating them as if both acted in good faith.
Under Article 448 of the Civil Code, which remedy is NOT immediately available to a landowner against a good faith builder?
Demolition is not a primary remedy under Article 448 when the builder is deemed to be in good faith.
Why was builder Sammy deemed to have acted in bad faith when constructing the apartments on Santi's land?
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Why can Santi NOT successfully demand the demolition of the encroaching portion of Sammy's apartments?
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Learn more about these topics
1. Bad Faith Encroachment
Under Article 453 of the Civil Code, if there is bad faith not only on the part of the person who builds, sows or plants on the land of another, but also on the part of the owner of such land, the rights of one and the other shall be the same as though both had acted in good faith. Bad faith on the part of the owner is deemed to exist whenever the building, sowing or planting was done in his presence, knowledge and forbearance, and without opposition on his part.
2. Good Faith Options
Under Article 448 of the Civil Code, when both the builder and the landowner are deemed to act in good faith, the landowner does not have the legal right to demand the demolition of the structure. Instead, the landowner is limited to two alternative options: either to appropriate as his own the building upon payment of the proper indemnity, or to compel the builder to pay the price of the land. Compulsory demolition is strictly prohibited unless the builder fails or refuses to pay the price of the land when so required.
3. Bad Faith Neutralization
The bad faith of the builder in constructing a structure on the property of another is legally neutralized by the bad faith of the landowner who knowingly permits such construction without objection. When bad faith is neutralized under Article 453 of the Civil Code, the statutory rule of Article 448 applies automatically as if both parties acted in good faith from the beginning. Consequently, the landowner is legally barred from seeking demolition as an initial or primary remedy against the encroaching builder.