Short answer. They are shared. The possessor whose good faith has ended is entitled to a part of the net harvest and a part of the cultivation expenses, both in proportion to the length of his possession, and the charges on the land are divided on the same basis. The owner takes the rest.
What the law says
the possessor shall have a right to a part of the expenses of cultivation, and to a part of the net harvest, both in proportion to the time of the possession
Civil Code, Article 545 — Pending Fruits When Good Faith Ceases. Read the full provision →
Why standing crops need a special rule
A possessor in good faith is entitled to the fruits he gathers before his good faith is interrupted — typically when he is served with a complaint or otherwise learns that his title is defective. Gathered fruits are his and are not returned.
The problem is the crop still in the ground on that day. It is neither gathered nor unplanted. Someone spent money on seed and labour, and the harvest is weeks or months away. Article 545 of the Civil Code answers this by splitting the crop rather than giving it entirely to either side, because both the land and the labour contributed to it.
How the split is computed
The measure is time of possession relative to the growing period. A possessor who tended the crop for most of its cycle before his good faith ceased takes a correspondingly larger part of the net harvest; one who had just planted takes little.
Two other items follow the same fraction. The possessor recovers a proportional part of the expenses of cultivation, and the charges on the property — the burdens attaching to it during that period — are divided by the two possessors on the same basis. Note the word net: the harvest is netted of the cost of producing it before anyone's fraction is applied, so this is not a division of gross proceeds.
The owner's option — and the trap in refusing it
The owner may, if he wishes, offer the possessor in good faith the right to finish the cultivation and gather the growing fruits, in place of the money settlement. It is the owner's choice to make the offer, not the possessor's right to demand it.
The sting is in the last clause. A possessor in good faith who, for any reason whatever, refuses to accept this concession loses the right to be indemnified in any other manner. Not a reduced indemnity — none. So a possessor who is offered the chance to finish the crop and turns it down out of pride or in the hope of a larger cash settlement can walk away with nothing at all.
Limits, and what to do
This article covers natural and industrial fruits — crops and the produce of the land. Civil fruits such as rent and interest accrue daily and are divided by time under a different rule. The article is also about fruits only; buildings and other improvements the possessor put up are governed by the separate rules on necessary and useful expenses, which can include a right to retain the property until reimbursement.
Everything turns on one date: when good faith ceased. Keep the summons, the demand letter, the registry records and dated photographs of the field, along with receipts for seed, fertiliser and labour. If you receive an offer to finish the harvest, do not reject it casually — get advice on the arithmetic first, because refusing costs more than it appears to.
Cases citing this provision
These Supreme Court decisions cite the provision above. We list them so you can read them yourself; the summaries of what each decided are not ours to give.
- Moreto Mirallosa and all persons claiming rights and interest under him vs. Carmel Development, Inc, G.R. No. 194538, November 27, 2013 — read the decision on LawPhil →