WHAT DOES POSSESSION MEAN IN CIVIL LAW IN BOLIVIA?
PRESUMPTIONS THAT PROTECT THE POSSESSOR
Bolivian law presumes possession in favor of the person who physically controls the asset, unless it is proven that the control is exercised as a mere holder, such as in the case of a caretaker or tenant. Additionally, if someone demonstrates past and current possession, it is presumed to have been continuous unless proven otherwise.
It is also important to note that if a person initially held the asset as a mere holder—such as a tenant—they cannot automatically become a possessor without altering the legal basis of their relationship to the asset.
GOOD FAITH AND BAD FAITH IN POSSESSION
The legal system presumes the possessor acts in good faith—that is, they legitimately believed they acquired the asset from the rightful owner. This presumption can only be overturned with clear evidence of bad faith. Good faith is assessed only at the beginning of possession; subsequent awareness of possible illegitimacy does not affect its original status.
A clear example would be someone who buys land genuinely believing that the seller was the rightful owner. Even if it is later discovered that the seller had no legal rights, the possession is still considered to have been in good faith for certain legal purposes.
POSSESSOR’S RIGHTS WHEN RETURNING THE PROPERTY
When a possessor is required to return the asset, such as in judicial recovery cases, the law grants several rights to ensure fairness:
RIGHT TO FRUITS
If the possessor acted in good faith, they may retain natural or civil fruits obtained until the official legal notification of the claim. Only fruits received after this notification must be returned.
REIMBURSEMENT OF EXPENSES
The possessor is entitled to reimbursement for the costs incurred in obtaining and collecting fruits, up to their value. They may also request reimbursement for extraordinary repairs, even if possession was in bad faith.
COMPENSATION FOR IMPROVEMENTS
Useful and necessary improvements must be compensated. If the possessor was in good faith, they are paid the amount by which the property’s value increased. In cases of bad faith, the compensation is limited to the lesser of the amount spent or the added value.
Luxury improvements do not entitle the possessor to compensation, but they may remove them if doing so does not damage the asset. If the new owner chooses to keep the improvements, they must reimburse the possessor.
RIGHT OF RETENTION
Until all reimbursements and compensations are paid, a good-faith possessor has the legal right to retain the asset. The judge may order payments to be made in installments and under appropriate guarantees, depending on the circumstances.
LIABILITY FOR LOSS OR DAMAGE
The possessor who must return the property is liable for any damages or loss that occur during the time they held possession. This liability seeks to protect the rightful owner from negligent behavior.
CONCLUSION
While possession does not equate to ownership, it gives rise to a range of legal rights and obligations with significant weight in Bolivian law. Understanding when someone is acting as a possessor, and under what conditions good faith is presumed or compensation rights are triggered, is crucial to avoiding unnecessary legal disputes. The current legal framework protects both rightful owners and good-faith possessors, aiming for a fair balance between the two parties.
Need legal assistance regarding possession, property improvements, or asset disputes? Contact our law firm today for expert legal guidance.
Frequently Asked Questions (FAQs)
Does possession automatically make me the owner?
No. While possession may confer certain legal rights, it does not replace a formal property title.
What is the difference between a possessor and a holder?
A possessor acts as if they were the owner of the asset, whereas a holder simply has it on behalf of another person, such as a tenant.
Is it always presumed that the possessor acts in good faith?
Yes, unless there is clear evidence to the contrary.
Can I be compensated for improvements made to someone else’s property?
Yes, if the improvements were useful or necessary and increased the property’s value.
What if I’m not paid for improvements when returning the asset?
You may legally retain the asset until the expenses are acknowledged and paid.
The content of this article does not reflect the technical opinion of Rigoberto Paredes & Associates and should not be considered a substitute for legal advice. The information presented herein corresponds to the date of publication and may be outdated at the time of reading. Rigoberto Paredes & Associates assumes no responsibility for keeping the information in this article up to date, as legal regulations may change over time.
