Pursuant to article 278 of the RA Civil Code, When reclaiming property from another’s illegal possession, the owner shall have the right to require from the person who has known or should have known that his or her possession is illegal (bad-faith possessor) to return or compensate also all those income that the person has received or could have received during the whole period of illegal possession of the property, and to require from good-faith possessor to return or compensate all those income that he or she has received or could have received starting from the moment when he or she has learnt or should have learnt that his or her possession is illegal or has been served a notification on returning the property upon claim of the owner.
Both good-faith and bad faith possessors intheir turn shall have the right to require from the owner the necessary expenses on the property incurred by them starting from the moment when the income received from the property reach the owner.
Good-faith possessor shall have the right to retain the improvements made by him or her when they may be separated without causing damage to the property. When it is impossible to separate the improvements, the good-faith possessor shall have the right to require compensation for the expenses incurred by him or her for improving the property, but not more than the amount of value added of the property.
