64 SPS AQUINO VS. SPS.

AGUILAR
GR NO. 182754, JUNE 29, 2015
PETITIONERS: Sps. Crispin Aquino and Teresa Aquino
RESPONDENTS: Sps. Eusebio Aguilar and Josefina V. Aguilar

FACTS:
1. Petitioner Spouses Aquinos are the owners of a house and lot occupied by
respondent Spouses Josefina and Eusebio Aguilar.
2. While respondents were in possession of the property, the house constructed
therein was demolished and another building was built.
3. Later on, petitioners demanded that the property be surrendered as an
immediate family will be using it.
4. The petitioners filed a complaint for ejectment against respondents before the
Barangay when their demands were not met, however the parties failed to reach
an amicable settlement.
5. Petitioners, thus, filed a complaint with the MeTC praying that the respondents
vacate the portion of the building they were occupying and pay a reasonable
amount for the use and enjoyment of premises from the time of formal demand
to vacate was made.
6. MeTC ruled in favor of petitioners finding that petitioners, as registered owners
of the land, were also owners of the improvement constructed thereon.
7. Respondents contended they were entitled to the reimbursements for the
expenses incurred for the improvements made as they were builders in good
faith insofar as petitioners consented to such improvements.
8. RTC affirmed MeTC’s decision.
9. CA affirmed RTC’s decision, but declared that respondents, although not builders
in good faith, should be reimbursed for the necessary and useful expenses they
had introduced on the property.
10. Petitioners contended that as as builders in bad faith, respondents were not
entitled for reimbursements.

ISSUE:
Whether or not respondents were builders in good faith, and thus, entitled
for reimbursements

HELD:
NO. The resolution of the issues at bar calls for the application of the rules
on accession under the Civil Code. The term “builder in good faith” as used in
reference to Article 448 of the Civil Code, refers to one who, not being the owner
of the land, builds on that land believing himself to be its owner and unaware of
the land, builds on that land, believing himself to be its owner and unaware of the
defect in his title or mode of acquisition. The essence of good faith lies in an honest
belief in the validity of one’s right, ignorance of a superior claim, and absence of
intention to overreach another.
In the instant case, the Spouses Aguilar cannot be considered as builders in
good faith on account of their admission that the subject lot belonged to the
Spouses Aquino when they constructed the building. At the onset, petitioners were
aware of a flaw in their title and a limit to their right to possess the property. By
law, one is considered in good faith if he is not aware that there exists in his title or
mode of acquisition any flaw which invalidates it.
 As builders in bad faith, respondents are not entitled to reimbursement of
useful expenses.