Q. Before I left the Philippines for Canada, I purchased a residential lot in my province. About a month ago, I received a disturbing news from my brother that someone has constructed a house on my lot by mistake. The house was almost finished when my brother discovered it. The builder all along thought that the land in which the construction was made was his. Actually the lot of the builder is located few lots away from my property based on the investigation and land survey conducted by my representative as confirmed by the builder.
To remedy the situation, the builder is proposing to swap our respective lots. However, I am not inclining to accept the proposal because the property being offered is far away from the adjoining lots owned by my sister and brother. Through your column, I wish to be apprised of my legal rights under this situation. Thanks and more power. Robert
Ans. Hello Robert. It appears that the one who made the construction over your lot did it upon his mistaken belief that the property was his.
In short, under the law he is considered a builder in good faith. Considering that you were not also aware of such fact until you were notified by your brother regarding the construction, you are considered an owner in good faith as well. Under Article 448 of the Civil Code:
You have two (2) options. First, you can appropriate what has been built thereon after indemnifying the builder with respect to the cost of his construction. Second, you can oblige the builder to pay the price of your lot. However, under the second option, the builder cannot be compelled to purchase your lot, if the value of your property is considerably more than what has been built or constructed.
The situation could have been different , had the builder was aware that the lot was not his and still proceeded with the construction. In such case, he is considered a builder in bad faith and under Article 449 of the Civil Code, he loses what has been built thereon without the right to indemnity.
Having spelled out your legal rights and taking into account the foregoing , the decision whether to swap your property with that of the builder, is a judgment call on your part.
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