A possessor in good faith — one who possesses property under a belief that they have a valid title or right, unaware of any flaw — enjoys significant protections. They are entitled to the fruits (natural, industrial, and civil) received while the possession is in good faith; good faith is deemed to last until they are legally interrupted, such as by the service of judicial summons. For expenses, a possessor in good faith is entitled to reimbursement of necessary expenses (for the preservation of the thing) and useful expenses (that increase its value or productivity), and has the right of retention over the property until reimbursed for these. As to useful improvements, the person who defeats their possession has the option to pay the amount spent or the increase in value. For luxurious (ornamental) expenses, the good-faith possessor is generally not reimbursed but may remove them if this causes no damage, or if the winner chooses to keep them by paying their value. A possessor in bad faith loses these protections and must return the fruits.
What happens to the person who possessed property in good faith but later loses the case for ownership? The law does not leave them empty-handed — it protects the possessor in good faith.
Who Is a Possessor in Good Faith
A possessor in good faith is one who possesses property under the belief that they have a valid title or right, unaware of any flaw that invalidates it. Good faith is presumed, and the person alleging bad faith must prove it.
The Right to Fruits
A possessor in good faith is entitled to the fruits — natural, industrial, and civil — received while the possession is in good faith. Good faith is deemed to last until legally interrupted, notably by the service of judicial summons. So fruits gathered before that interruption are kept; fruits after it belong to the winner.
Reimbursement of Expenses
The possessor in good faith is entitled to reimbursement of:
- Necessary expenses — those for the preservation of the thing; and
- Useful expenses — those that increase the value or productivity of the thing.
The Right of Retention
A powerful protection: the good-faith possessor has the right of retention — they may keep possession until reimbursed for the necessary and useful expenses. The winner cannot simply take the property back without paying.
Useful Improvements: the Winner's Option
For useful improvements, the person who defeats the possession has the option to either:
- Pay the amount spent on the improvement; or
- Pay the increase in value the property gained.
Luxurious (Ornamental) Expenses
For luxurious or ornamental expenses, the good-faith possessor is generally not reimbursed, but may:
- Remove the ornaments if it causes no damage; or
- Let the winner keep them by paying their value (at the possessor's option to remove or the winner's to retain, under the rules).
Contrast With a Possessor in Bad Faith
A possessor in bad faith loses these protections: they must return the fruits received (and account for those they could have received), and are reimbursed only for necessary expenses (no right of retention for useful ones), among other consequences.
Practical Takeaways
- A possessor in good faith keeps the fruits received before legal interruption (like summons);
- They are reimbursed for necessary and useful expenses and enjoy a right of retention until paid;
- A bad-faith possessor must return the fruits and loses most of these protections.
Frequently Asked Questions
Who is a possessor in good faith? One who possesses property believing they have a valid title or right, unaware of any flaw that invalidates it. Good faith is presumed, and the person alleging bad faith must prove it.
Does a good-faith possessor keep the fruits of the property? Yes. They are entitled to the fruits received while the possession is in good faith, which lasts until legally interrupted, such as by the service of judicial summons. Fruits after that belong to the winner.
What is the right of retention? The right of a good-faith possessor to keep possession of the property until they are reimbursed for necessary and useful expenses. The winner cannot take the property back without paying these.
What happens to a possessor in bad faith? A possessor in bad faith must return the fruits received and account for those they could have received, is reimbursed only for necessary expenses without a right of retention for useful ones, and loses the good-faith protections.
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.