Land Encroachment Disputes Arising from Unapproved Construction (Philippine law, updated May 2025)
1 | Why this problem keeps coming up
Rapid urban build-outs, scarce titled land, and a permit system that can be slow or inconsistently enforced mean it is not unusual for a neighbour, informal settler, or even a developer to pour concrete a few meters inside somebody else’s lot—or to erect an entire structure without a building permit at all. Once the rebar sets, the dispute becomes a mix of property, building-code, and sometimes criminal law. (Respicio & Co.)
2 | Key legal concepts
| Term | What it means | Primary source |
|---|---|---|
| Encroachment | A physical structure or portion thereof crosses the surveyed boundary of another person’s Torrens-titled land, or of public property such as a road-right-of-way. | Arts. 434-436 Civil Code; PD 1529 (Property Registration Decree) |
| Unapproved construction | Any “building, extension, wall, fence, kiosk, post or other improvement” commenced without a valid building permit or zoning clearance, or built in breach of an issued permit. | Secs. 301, 215 PD 1096 (National Building Code) (Respicio & Co.) |
| Builder in good faith | A non-owner who builds honestly believing he owns—or is authorised to use—the land; good faith is presumed and bad faith must be proved. | Art. 448 Civil Code; Spouses Aquino v. Aguilar, G.R. 182754 (2015) (DivinaLaw) |
3 | Governing statutes & regulations (snapshot 2025)
- 1987 Constitution – protects property and requires due process before demolition.
- Civil Code (Arts. 414-455) – accession rules (who owns what was built) and remedies under Art. 448.
- National Building Code (PD 1096) + IRR – makes permits mandatory, lets the Office of the Building Official (OBO) issue Notices of Violation, Stop-Work Orders, and Demolition Orders; Sec. 213 imposes daily fines or imprisonment for illegal builds. (Respicio & Co.)
- Local Government Code (RA 7160) – LGUs may summarily abate a structure that is a nuisance per se (e.g., blocking a road). (Respicio & Co.)
- Urban Development & Housing Act (RA 7279) – humanitarian 30-day notice, consultation and, where feasible, relocation only for dwellings of the “under-privileged and homeless.” (Respicio & Co.)
- DHSUD Department Circulars 2024-005 & -018 – require a development permit for every subdivision/condo building and tighten technical standards on lot boundaries. (Human Settlements Development)
- NBCDO Memorandum-Circular 01-s-2025 – triples administrative fines for building without a permit. (Respicio & Co.)
- Pending reform: House Bill 900 (2024) would replace PD 1096 with a fully digital “BuildPASS” system and stiffer criminal sanctions. (Respicio & Co.)
4 | Administrative enforcement (fastest route)
- Complaint / inspection – Any aggrieved land-owner (or concerned citizen) can file with the OBO; inspector issues a Notice of Violation (NOV).
- Stop-Work Order (Sec. 207 PD 1096) – immediate; fines accrue daily.
- Show-cause hearing – builder may legalise by securing a permit and paying penalties, or the OBO brands the structure non-rectifiable.
- Demolition / Abatement Order (Sec. 215) – 15 days to comply; mayor affirms.
- Appeal – 15 days to the DPWH Secretary; beyond that, a Rule 65 petition to the Court of Appeals.
- Execution – LGU demolition team with PNP assistance; costs charged to violator. (Respicio & Co.)
If the structure blocks a public road, the LGU or MMDA can remove it summarily as a nuisance, no court-order required. (Respicio & Co.)
5 | Barangay justice & ADR
Except where urgent injunctive relief is needed, the Katarungang Pambarangay system is a compulsory first stop when the parties reside in the same city or municipality. A failed conciliation certificate is a jurisdictional requirement before filing most civil or criminal cases. (Respicio & Co.)
6 | Civil-court remedies
| Remedy | When used | Typical relief |
|---|---|---|
| Forcible Entry / Unlawful Detainer (Rule 70) | Entry by force, intimidation, threat, stealth; must sue within one year | Immediate restoration of possession; demolition |
| Accion reivindicatoria | Builder claims ownership | Judicial declaration of ownership; Art. 448 options |
| Injunction | Ongoing build threatens irreparable harm | TRO/PI to freeze work; permanent injunction |
| Quieting of title / boundary settlement | Overlapping titles | Court-approved relocation survey; removal of encroaching portions |
| Abatement of nuisance | Danger to life/health or obstruction of public way | Removal + damages |
7 | Art. 448 Civil Code in action
If the builder is in GOOD faith
- Land-owner’s option 1: Appropriate the building after paying the builder the current value of materials & labour (Arts. 546-548).
- Option 2: Sell the encroached land to the builder unless land value is “considerably more” than the building—in which case the builder merely pays reasonable rent.
- Builder may retain possession until paid.
If the builder is in BAD faith
- Land-owner may (a) appropriate without paying, (b) compel the builder to buy the land even if land value is greater, or (c) demand removal at builder’s expense and damages. (DivinaLaw, Zigguratrealestate)
Good-faith test: honest belief in one’s title plus absence of “clear and convincing” proof of knowledge of someone else’s ownership. An expired or forged deed, or a prior demand to stop building, usually destroys good faith. (DivinaLaw)
8 | Criminal exposure
| Statute | Offence | Penalty (2025) |
|---|---|---|
| PD 1096 §213 | Building without permit; disobeying stop-work order | Fine ₱10 000 – ₱100 000/day or up to 2 yrs imprisonment (higher under MC 01-2025) (Respicio & Co.) |
| Revised Penal Code | Usurpation of real rights (Art 312), trespass (Art 280), malicious mischief (Art 328) | Arresto mayor to prision correccional + damages |
| Local ordinances | Zoning / setback violations | Up to ₱5 000 and/or 6 months jail (Respicio & Co.) |
“Professional squatters” remain criminally liable under RA 7279 §27 even after PD 772’s repeal.
9 | Landmark jurisprudence (illustrative list)
| Case | Year | Holding |
|---|---|---|
| Heirs of Malate v. Gamboa | 2017 | No automatic bad faith just because the builder lacked a permit; Art. 448 still applied. (Zigguratrealestate) |
| Spouses Felisa v. Heirs of Dasmariñas | 2012 | Art. 448 inapplicable when the parties’ lease already governed their rights. (Respicio & Co.) |
| People v. Manalo | 2020 | Conviction under PD 1096 affirmed; offence is mala prohibitum—intent immaterial. (Respicio & Co.) |
| Mendoza v. Mayor of Sta. Rosa (QC Ordinance SP-180080) | 2024 | Supreme Court upheld LGU’s power to demolish dangerous buildings after OBO findings without separate court action. (Respicio & Co.) |
10 | Special situations & nuances
- Informal settler dwellings – UDHA humanitarian steps apply; failure exposes officials to Ombudsman sanctions. (Respicio & Co.)
- Public roads / easements – Structures that obstruct public-use property are nuisance per se; LGU may act summarily.
- Waterways / riverbanks – 3-meter (urban) or wider legal easements; DENR may issue a Writ of Kalikasan.
- Subdivision / condo projects – DHSUD must issue a development permit before any building permit; violations can void the project registration. (Human Settlements Development)
11 | Evidentiary & procedural tips
- Secure proof of title and boundaries – certified TCT, tax decs, approved relocation survey.
- Document the build – dated photos, OBO notices, barangay minutes.
- Demand-letter first (unless violence/urgency).
- Parallel tracks – pursue administrative abatement while applying for court injunction; one does not bar the other.
- Cost tracking – demolition expenses are recoverable as damages or as a lien on the violator’s property. (Respicio & Co.)
12 | Reform outlook (2025-onward)
Congress is debating a Philippine Building Act (HB 900) that would (a) digitise permits nationwide, (b) raise maximum criminal fines to ₱5 million, and (c) streamline abatement for unsafe buildings. Stakeholders should monitor DPWH-NBCDO circulars—MC 01-2025 already raised administrative fines and standardised nationwide penalty brackets. (Respicio & Co., Respicio & Co.)
13 | Practical checklist for land-owners facing an encroachment
- Obtain a relocation survey to confirm boundary overlap.
- Send a written demand to cease construction and vacate/remove.
- Lodge a complaint with the OBO and request a Stop-Work Order.
- If the build is dangerous or blocking a right-of-way, ask the LGU for summary abatement.
- Prepare for barangay mediation; if it fails, file the appropriate civil action and, if urgent, a TRO.
- Invoke Art. 448 options early—sometimes buying or selling the sliver of land is cheaper than litigation.
- Enforce final orders promptly; delay only increases reasonable rental or damages exposure. (Respicio & Co.)
14 | Take-aways
The sooner you assert your boundary rights, the cheaper it is to fix the problem. Philippine law gives you layered remedies—administrative, civil, and criminal—while balancing humanitarian concerns where homes are involved. Know which lever to pull, gather hard evidence, and act quickly, preferably with professional surveyors and counsel.
Disclaimer: This primer is for information only and is not legal advice. Always consult a Philippine-licensed lawyer for specific situations.