When someone builds, plants, or sows on land they know is not theirs, they are a builder, planter, or sower in bad faith, and the law treats them harshly. The landowner has options: appropriate whatever was built, planted, or sown without paying any indemnity, and additionally recover damages; or demand that the bad-faith builder demolish or remove what was built and restore the land to its former condition, at the builder's expense; or, for planting, require the removal. A bad-faith builder loses what they built and cannot demand reimbursement (except for necessary expenses of preservation). If, however, both the landowner and the builder acted in bad faith, the law treats it as if both were in good faith, applying the good-faith rules instead. There is a related presumption that a landowner who knows of and does not object to the construction is deemed to have acted in bad faith too. Good faith or bad faith is thus decisive.
Building a house on land you know is not yours is legally reckless. The law comes down hard on a builder in bad faith.
Who Is a Builder in Bad Faith
A builder, planter, or sower in bad faith is one who builds, plants, or sows on another's land knowing that the land is not theirs (or without a legitimate belief of ownership). This is the opposite of a builder in good faith, who honestly believed they owned the land.
The Landowner's Options
Against a bad-faith builder, the landowner may:
- Appropriate whatever was built, planted, or sown without paying any indemnity, and recover damages; or
- Demand that the builder demolish or remove what was built and restore the land to its former condition, at the builder's expense, plus damages; or
- For planting or sowing, compel removal and recover damages.
The choice belongs to the landowner, not the bad-faith builder.
What the Bad-Faith Builder Loses
The bad-faith builder:
- Loses what they built, planted, or sown if the owner appropriates it;
- Cannot demand reimbursement for the value of the improvement (unlike a good-faith builder); and
- Is entitled only to reimbursement of necessary expenses for the preservation of the land (not the improvement itself).
When Both Are in Bad Faith
An important twist: if the landowner also acted in bad faith (for example, they knew of the construction and did not object), the law treats it as if both acted in good faith — and the more balanced good-faith rules apply (the owner must pay indemnity or sell the land, etc.). The landowner's bad faith neutralizes the builder's.
Good Faith vs. Bad Faith Is Decisive
Everything turns on good or bad faith. A good-faith builder is protected (the owner must pay for the improvement or sell the land). A bad-faith builder is exposed to demolition and damages. So the honest belief of ownership — or the lack of it — is the pivotal fact.
Practical Takeaways
- A bad-faith builder can be made to demolish and pay damages, or lose the improvement without indemnity;
- They cannot demand reimbursement for the improvement, only necessary expenses to preserve the land;
- If the landowner is also in bad faith (knew and did not object), the good-faith rules apply instead.
Frequently Asked Questions
Who is a builder in bad faith? One who builds, plants, or sows on another's land knowing that the land is not theirs, or without a legitimate belief of ownership, unlike a good-faith builder who honestly believed they owned it.
What can a landowner do against a bad-faith builder? Appropriate what was built without paying indemnity and recover damages, or demand demolition and restoration of the land at the builder's expense plus damages. The choice belongs to the landowner.
Can a bad-faith builder recover the cost of what they built? No. A bad-faith builder cannot demand reimbursement for the value of the improvement. They are entitled only to reimbursement of necessary expenses for the preservation of the land itself.
What if the landowner also acted in bad faith? If the landowner also acted in bad faith, for example by knowing of the construction and not objecting, the law treats it as if both acted in good faith, and the more balanced good-faith rules apply instead.
This commentary is for general informational purposes only and does not constitute legal advice. For guidance specific to your situation, please consult a licensed attorney.
If you have questions about your rights or options under Philippine law, our firm is available to assist. You may reach us via Viber or WhatsApp, call us at 0995 433 5550, or send an email to vivasnobles@gmail.com. We look forward to hearing from you.