SALES [G.R. No. 156171. April 22, 2005.] Spouses RICARDO a ! "ER#A $OR%IC, petitioners, &s.

ANAS%ACIA CRIS%O'AL, respondent.

SYLLABUS 1. CIVIL LAW; PROPERTY; QUIETIN O! TITLE; LAC" O! ACTUAL CERTI!ICATE O! TITLE TO A PROPERTY #OES NOT NECESSARILY BAR AN ACTION TO QUIET TITLE; $TITLE$ #OES NOT NECESSARILY RE!ER TO T%E ORI INAL OR TRANS!ER CERTI!ICATE O! TITLE. & T'e CA 'e(d t')t t'e )*tion +or t'e ,-ietin. o+ tit(e *o-(d not prosper, /e*)-se Cristo/)(0s tit(e to t'e propert1 2)s )3p(1 s-pported /1 e4iden*e. . . . S-its to ,-iet tit(e )re *')r)*teri5ed )s pro*eedin.s ,-)si in re3. Te*'ni*)((1, t'e1 )re neit'er in re3 nor in person)3. In )n )*tion ,-)si in re3, )n indi4id-)( is n)3ed )s de+end)nt. %o2e4er, -n(i6e s-its in re3, ) ,-)si in re3 7-d.3ent is *on*(-si4e on(1 /et2een t'e p)rties. ener)((1, t'e re.istered o2ner o+ ) propert1 is t'e proper p)rt1 to /rin. )n )*tion to ,-iet tit(e. %o2e4er, it ')s /een 'e(d t')t t'is re3ed1 3)1 )(so /e )4)i(ed o+ /1 ) person ot'er t')n t'e re.istered o2ner /e*)-se, in t'e Arti*(e reprod-*ed )/o4e, $tit(e$ does not ne*ess)ri(1 re+er to t'e ori.in)( or tr)ns+er *erti+i*)te o+ tit(e. T'-s, ()*6 o+ )n )*t-)( *erti+i*)te o+ tit(e to ) propert1 does not ne*ess)ri(1 /)r )n )*tion to ,-iet tit(e. As 2i(( /e s'o2n ()ter, petitioners ')4e not t-rned o4er )nd ')4e t'-s ret)ined t'eir tit(e to t'e propert1. 8. I#.; SALES; CONTRACT TO SELL; RESPON#ENT CANNOT CLAI9 TITLE TO PROPERTY; A REE9ENT BETWEEN T%E PARTIES IS A CONTRACT TO SELL, AS SUC%, OWNERS%IP IS RETAINE# BY PETITIONERS:VEN#ORS AN# WILL NOT BE PASSE# TO RESPON#ENT:VEN#EE UNTIL !ULL PAY9ENT O! PURC%ASE PRICE. & ;T<'e *()i3 o+ respondent *)nnot /e s-st)ined. T'e tr)ns+er o+ o2ners'ip o+ t'e pre3ises in 'er +)4or 2)s s-/7e*t to t'e s-spensi4e *ondition stip-()ted /1 t'e p)rties in p)r).r)p' = o+ t'e 9OA, 2'i*' st)tes )s +o((o2s> $=. T')t 2'i(e t'e /)()n*e o+ P1??,@@@.@@ ')s not 1et /een +-((1 p)id t'e !IRST PARTY OWNERS s')(( ret)in t'e o2ners'ip o+ t'e )/o4e des*ri/ed p)r*e( o+ ()nd to.et'er 2it' its i3pro4e3ents /-t t'e SECON# PARTY BUYER s')(( ')4e t'e ri.'t to *o((e*t t'e 3ont'(1 rent)(s d-e on t'e +irst door A1=:AB o+ t'e s)id )p)rt3ent;$ T'e )/o4e:*ited pro4ision *')r)*teri5es t'e ).ree3ent /et2een t'e p)rties )s ) *ontr)*t to se((, not ) *ontr)*t o+ s)(e. O2ners'ip is ret)ined /1 t'e 4endors, t'e Porti*s; it 2i(( not /e p)ssed to t'e 4endee, t'e Cristo/)(s, -nti( t'e +-(( p)13ent o+ t'e p-r*')se pri*e. S-*' p)13ent is ) positi4e s-spensi4e *ondition, )nd +)i(-re to *o3p(1 2it' it is not ) /re)*' o+ o/(i.)tion; it is 3ere(1 )n e4ent t')t pre4ents t'e e++e*ti4it1 o+ t'e o/(i.)tion o+ t'e 4endor to *on4e1 t'e tit(e. In s'ort, -nti( t'e +-(( pri*e is p)id, t'e 4endor ret)ins o2ners'ip. =. I#.; I#.; 9ERE RE ISTRATION IS NOT ENOU % TO ACQUIRE A NEW TITLE AS OO# !AIT% 9UST ALSO CONCUR; AS LON AS T%E PURC%ASE PRICE RE9AINS UNPAI#, RESPON#ENT CANNOT !EI N OO# !AIT% AN#

IS ALSO PRECLU#E# !RO9 ASSERTIN OWNERS%IP A AINST PETITIONERS. & T'e 3ere iss-)n*e o+ t'e Certi+i*)te o+ Tit(e in +)4or o+ Cristo/)( did not 4est o2ners'ip in 'er. Neit'er did it 4)(id)te t'e )((e.ed )/so(-te p-r*')se o+ t'e (ot. Ti3e )nd ti3e ).)in, t'is Co-rt ')s stressed t')t re.istr)tion does not 4est, /-t 3ere(1 ser4es )s e4iden*e o+, tit(e. O-r ()nd re.istr)tion ()2s do not .i4e t'e 'o(ders )n1 /etter tit(e t')n t')t 2'i*' t'e1 )*t-)((1 ')4e prior to re.istr)tion. Under Arti*(e 1?CC o+ t'e Ci4i( Code, 3ere re.istr)tion is not eno-.' to )*,-ire ) ne2 tit(e. ood +)it' 3-st *on*-r. C(e)r(1, respondent ')s not 1et +-((1 p)id t'e p-r*')se pri*e. %en*e, )s (on. )s it re3)ins -np)id, s'e *)nnot +ei.n .ood +)it'. S'e is )(so pre*(-ded +ro3 )ssertin. o2ners'ip ).)inst petitioners. T'e )ppe(()te *o-rt0s +indin. t')t s'e ')d ) 4)(id tit(e to t'e propert1 3-st, t'ere+ore, /e set )side. C. I#.; PRESCRIPTION; ACTION TO QUIET TITLE %AS NOT PRESCRIBE# SINCE PETITIONERS %A# BEEN IN CONTINUOUS POSSESSION O! T%E SUBDECT PRE9ISES. & T'e iss-e o+ 2'et'er t'e Porti*s ')4e /een in )*t-)(, *ontin-o-s possession o+ t'e pre3ises is ne*ess)ri(1 ) ,-estion o+ +)*t. We((:entren*'ed is t'e r-(e t')t +indin.s o+ +)*t o+ t'e Co-rt o+ Appe)(s, 2'en s-pported /1 s-/st)nti)( e4iden*e, )re +in)( )nd *on*(-si4e )nd 3)1 not /e re4ie2ed on )ppe)(. T'is Co-rt +inds no *o.ent re)son to dist-r/ t'e CA0s +indin.s s-st)inin. t'ose o+ t'e tri)( *o-rt, 2'i*' 'e(d t')t petitioners ')d /een in *ontin-o-s possession o+ t'e pre3ises. !or t'is re)son, t'e )*tion to ,-iet tit(e ')s not pres*ri/ed. AST*E) DECISION $ANGANI'AN, ( p) An ).ree3ent in 2'i*' o2ners'ip is reser4ed in t'e 4endor )nd is not to p)ss to t'e 4endee -nti( +-(( p)13ent o+ t'e p-r*')se pri*e is 6no2n )s ) *ontr)*t to se((. T'e )/sen*e o+ +-(( p)13ent s-spends t'e 4endors0 o/(i.)tion to *on4e1 tit(e. T'is prin*ip(e 'o(ds tr-e /et2een t'e p)rties, e4en i+ t'e s)(e ')s )(re)d1 /een re.istered. Re.istr)tion does not 4est, /-t 3ere(1 ser4es )s e4iden*e o+, tit(e to ) p)rti*-()r propert1. O-r ()nd re.istr)tion ()2s do not .i4e tit(e 'o(ders )n1 /etter o2ners'ip t')n 2')t t'e1 )*t-)((1 ')d prior to re.istr)tion. %*e Case Be+ore -s is ) Petition +or Re4ie2 1 -nder R-(e C? o+ t'e R-(es o+ Co-rt, *')((en.in. t'e D)n-)r1 8E, 8@@8 #e*ision 8 )nd t'e No4e3/er 1F, 8@@8 Reso(-tion = o+ t'e Co-rt o+ Appe)(s ACAB in CA: R CV No. GG=E=. T'e )ss)i(ed #e*ision disposed )s +o((o2s> $W%ERE!ORE, +ore.oin. *onsidered, t'e )ppe)(ed de*ision is 'ere/1 REVERSE# )nd SET ASI#E. A ne2 one is 'ere/1 entered OR#ERIN de+end)nt:)ppe(()nt to p)1 t'e -np)id /)()n*e o+ P??,@@@.@@ p(-s (e.)( interest o+ GH per )nn-3 *o-nted +ro3 t'e +i(in. o+ t'is *)se. T'e o2ners'ip o+ de+end)nt:)ppe(()nt o4er t'e s-/7e*t propert1 is 'ere/1 *on+ir3ed. $No prono-n*e3ent )s to *osts.$ In t'e *')((en.ed Reso(-tion, t'e CA denied petitioners0 9otion +or P)rti)( Re*onsider)tion.

%*e "a+,s T'e +)*ts 2ere s-33)ri5ed /1 t'e )ppe(()te *o-rt )s +o((o2s> $Spo-ses C(od-)(do A(*)nt)r) )nd C)nde()ri) Edros)()3 2ere t'e ori.in)( re.istered o2ners o+ ) p)r*e( o+ ()nd 2it' t'ree:door )p)rt3ent, (o*)ted )t No. E, 1st Street BBB, 9)r-()s, V)(en5-e() Cit1. Tr)ns+er Certi+i*)te o+ Tit(e No. T:I1=1G 2)s iss-ed in t'e n)3es o+ spo-ses C(od-)(do A(*)nt)r) )nd C)nde()ri) Edros)()3. $On O*to/er 8, 1EGF, spo-ses C(od-)(do A(*)nt)r) )nd C)nde()ri) Edros)()3 so(d t'e s-/7e*t propert1 in +)4or o+ ;petitioners< 2it' t'e *ondition t')t t'e ()tter s')(( )ss-3e t'e 3ort.).e eJe*-ted o4er t'e s-/7e*t propert1 /1 spo-ses C(od-)(do A(*)nt)r) )nd C)nde()ri) Edros)()3 in +)4or o+ t'e So*i)( Se*-rit1 S1ste3. $;Petitioners< de+)-(ted in t'e p)13ent o+ t'e 3ont'(1 )3orti5)tions d-e on t'e 3ort.).e. T'e So*i)( Se*-rit1 S1ste3 +ore*(osed t'e 3ort.).e )nd so(d t'e s-/7e*t propert1 )t p-/(i* )-*tion 2it' t'e So*i)( Se*-rit1 S1ste3 )s t'e 'i.'est /idder. $On 9)1 88, 1EFC, /e+ore t'e eJpir)tion o+ t'e rede3ption period, ;petitioners< so(d t'e s-/7e*t propert1 in +)4or o+ ;respondent< in *onsider)tion o+ P8@@,@8?.FE. A3on. ot'ers, t'e p)rties ).reed t')t ;respondent< s')(( p)1 t'e s-3 o+ PC?,@8?.FE )s do2n p)13ent )nd t'e /)()n*e o+ P1??,@@@.@@ s')(( /e p)id on or /e+ore 9)1 88, 1EF?. T'e p)rties +-rt'er ).reed t')t in *)se ;respondent< s'o-(d +)i( to *o3p(1 2it' t'e *onditions, t'e s)(e s')(( /e *onsidered 4oid )nd ;petitioners< s')(( rei3/-rse ;respondent< o+ 2')te4er )3o-nt )(re)d1 p)id. $On t'e s)3e d)te, ;petitioners< )nd ;respondent< eJe*-ted ) 0#eed o+ S)(e 2it' Ass-3ption o+ 9ort.).e0 2'ere/1 ;petitioners< so(d t'e s-/7e*t propert1 in +)4or o+ ;respondent< in *onsider)tion o+ PF@,@@@.@@, PC?,@@@.@@ t'ereo+ s')(( /e p)id to t'e So*i)( Se*-rit1 S1ste3. $On D-(1 =@, 1EFC, spo-ses C(od-)(do A(*)nt)r) )nd C)nde()ri) Edros)()3, t'e ori.in)( o2ners o+ t'e s-/7e*t propert1, so(d t'e s-/7e*t propert1 in +)4or o+ ;respondent< +or P?@,@@@.@@. $On t'e s)3e d)te, ;respondent< eJe*-ted ) 0#eed o+ 9ort.).e0 2'ere/1 ;respondent< *onstit-ted ) 3ort.).e o4er t'e s-/7e*t propert1 to se*-re ) P1?@,@@@.@@ inde/tedness in +)4or o+ ;petitioners<. $;Respondent< p)id t'e inde/tedness d-e o4er t'e s-/7e*t propert1 to t'e So*i)( Se*-rit1 S1ste3. $On A-.-st G, 1EFC, Tr)ns+er Certi+i*)te o+ Tit(e No. T:I1=1G in t'e n)3es o+ spo-ses C(od-)(do A(*)nt)r) )nd C)nde()ri) Edros)()3 2)s *)n*e((ed )nd in (ie- t'ereo+ Tr)ns+er Certi+i*)te o+ Tit(e No. T:11=8EE 2)s iss-ed in t'e n)3e o+ ;respondent<. $On 9)1 8@, 1EEG, ;petitioners< de3)nded +ro3 ;respondent< t'e )((e.ed -np)id /)()n*e o+ P??,@@@.@@. ;Respondent< re+-sed to p)1. $On D-ne G, 1EEG, ;petitioners< +i(ed t'is inst)nt *i4i( *)se ).)inst ;respondent< to re3o4e t'e *(o-d *re)ted /1 t'e iss-)n*e o+ TCT No. T:11=8EE in +)4or o+ ;respondent<. ;Petitioners< *()i3ed t')t t'e1 so(d t'e s-/7e*t propert1 to ;respondent< on t'e *ondition t')t ;respondent< s')(( p)1 t'e /)()n*e on or /e+ore 9)1 88, 1EF?; t')t in *)se o+ +)i(-re

to p)1, t'e s)(e s')(( /e *onsidered 4oid )nd ;petitioners< s')(( rei3/-rse ;respondent< o+ t'e )3o-nts )(re)d1 p)id; t')t ;respondent< +)i(ed to +-((1 p)1 t'e p-r*')se pri*e 2it'in t'e period; t')t on )**o-nt o+ t'is +)i(-re, t'e s)(e o+ t'e s-/7e*t propert1 /1 ;petitioners< to ;respondent< is 4oid; t')t in spite o+ t'is +)i(-re, ;respondent< re,-ired ;petitioners< to si.n ) (e)se *ontr)*t o4er t'e )p)rt3ent 2'i*' ;petitioners< o**-p1; t')t ;respondent< s'o-(d /e re,-ired to re*on4e1 /)*6 t'e tit(e to t'e s-/7e*t propert1 to ;petitioners<. #%IT*S $;Respondent< on 'er p)rt *()i3ed t')t 'er tit(e o4er t'e s-/7e*t propert1 is )(re)d1 inde+e)si/(e; t')t t'e tr-e ).ree3ent o+ t'e p)rties is t')t e3/odied in t'e #eed o+ A/so(-te S)(e 2it' Ass-3ption o+ 9ort.).e; t')t ;respondent< ')d +-((1 p)id t'e p-r*')se pri*e; t')t ;respondent< is t'e tr-e o2ner o+ t'e s-/7e*t propert1; t')t ;petitioners0< *()i3 is )(re)d1 /)rred /1 ()*'es.$ G A+ter tri)(, t'e Re.ion)( Tri)( Co-rt ARTCB o+ V)(en5-e() Cit1 rendered t'is 7-d.3ent in +)4or o+ petitioners> $W%ERE!ORE, pre3ises *onsidered, t'is Co-rt 'ere/1 )d7-di*)tes on t'is *)se )s +o((o2s> 1.B T'e Co-rt 'ere/1 orders t'e ,-ietin. o+ tit(e or re3o4)( o+ *(o-d o4er t'e ;petitioners0< p)r*e( o+ ()nd )nd t'ree A=B door )p)rt3ent no2 *o4ered /1 Tr)ns+er Certi+i*)te o+ Tit(e No. T:11=8EE o+ t'e Re.istr1 o+ #eeds +or C)(oo*)n Cit1 )nd T)J #e*()r)tion Nos. C:@1F:@@8=? K C:@=1:@18@II respe*ti4e(1, o+ V)(en5-e() Cit1; 8.B T'e Co-rt 'ere/1 orders t'e ;respondent< to re*on4e1 in +)4or o+ t'e ;petitioners< t'e p)r*e( o+ ()nd )nd t'ree A=B door )p)rt3ent no2 *o4ered /1 Tr)ns+er Certi+i*)te o+ Tit(e No. T:11=8EE o+ t'e Re.istr1 o+ #eeds o+ C)(oo*)n Cit1 )+ter rei3/-rse3ent /1 t'e ;petitioners< o+ t'e )3o-nt )*t-)((1 p)id /1 t'e ;respondent< in t'e tot)( )3o-nt o+ P1C?,@8?.FE; =.B T'e Co-rt 'ere/1 #ENIES d)3).es )s *()i3ed /1 /ot' p)rties.$ I R-(in. o+ t'e Co-rt o+ Appe)(s T'e Co-rt o+ Appe)(s opined t')t t'e +irst 9e3or)nd-3 o+ A.ree3ent A9OAB e3/odied t'e re)( ).ree3ent /et2een t'e p)rties, )nd t')t t'e s-/se,-ent #eeds 2ere eJe*-ted 3ere(1 to se*-re t'eir respe*ti4e ri.'ts o4er t'e propert1. F T'e 9OA st)ted t')t Cristo/)( ')d not +-((1 p)id t'e p-r*')se pri*e. A(t'o-.' t'is st)te3ent 3i.'t ')4e .i4en rise to ) *)-se o+ )*tion to )nn-( t'e #eed o+ S)(e, pres*ription )(re)d1 set in /e*)-se t'e *)se ')d /een +i(ed /e1ond t'e ten:1e)r re.(e3ent)r1 period, E )s o/ser4ed /1 t'e CA. Nonet'e(ess, in *on+or3it1 2it' t'e prin*ip(e o+ -n7-st enri*'3ent, t'e )ppe(()te *o-rt ordered respondent to p)1 petitioners t'e re3)inin. /)()n*e o+ t'e p-r*')se pri*e. 1@ In t'eir 9otion +or P)rti)( Re*onsider)tion, petitioners *ontended t')t t'eir )*tion 2)s not one +or t'e en+or*e3ent o+ ) 2ritten *ontr)*t, /-t one +or t'e ,-ietin. o+ tit(e & )n )*tion t')t 2)s i3pres*ripti/(e )s (on. )s t'e1 re3)ined in possession o+ t'e pre3ises. 11 T'e CA 'e(d, 'o2e4er, t')t t'e ).ree3ent /et2een t'e p)rties 2)s 4)(id, )nd t')t respondent0s tit(e to t'e propert1 2)s )3p(1 s-pported /1 t'e e4iden*e. 18 T'ere+ore, t'eir )*tion +or t'e ,-ietin. o+ tit(e 2o-(d not prosper, /e*)-se t'e1 +)i(ed to s'o2 t'e in4)(idit1 o+ t'e *(o-d on t'eir tit(e. AC)#T% %en*e, t'is Petition. 1= T'e Iss-e In its 9e3or)nd-3, petitioners r)ise t'e +o((o2in. iss-es +or o-r *onsider)tion> $A1B W'et'er or not t'e ;petitioners0< *)-se o+ )*tion is +or ,-ietin. o+ tit(e.

$A8B W'et'er or not t'e ;petitioners0< *)-se o+ )*tion ')s pres*ri/ed.$ 1C T'e 3)in iss-e re4o(4es )ro-nd t'e *')r)*teri5)tion o+ t'e p)rties0 ).ree3ent )nd t'e 4i)/i(it1 o+ petitioners0 *)-se o+ )*tion. T'is Co-rt0s R-(in. T'e Petition ')s 3erit. 9)in Iss-e> N)t-re o+ t'e A*tion> Q-ietin. o+ Tit(e or En+or*e3ent o+ ) Written Contr)*t Petitioners )r.-e t')t t'e )*tion t'e1 +i(ed in t'e RTC 2)s +or t'e ,-ietin. o+ tit(e. Respondent0s de3)nd t')t t'e1 desist +ro3 enterin. into ne2 (e)se ).ree3ents 2it' t'e ten)nts o+ t'e propert1 )((e.ed(1 )ttests to t'e +)*t o+ t'eir possession o+ t'e s-/7e*t pre3ises. 1? !-rt'er, t'e1 point to t'e eJisten*e o+ Ci4i( C)se No. ICCG, )n )*tion +or -n()2+-( det)iner t')t respondent +i(ed ).)inst t'e3, 1G )s +-rt'er proo+ o+ t')t +)*t. Bein. in *ontin-o-s possession o+ t'e propert1, t'e1 )r.-e t')t t'eir )*tion +or t'e ,-ietin. o+ tit(e ')s not pres*ri/ed. 1I On t'e ot'er ')nd, respondent 7oins t'e )ppe(()te *o-rt in *')r)*teri5in. t'e )*tion petitioners +i(ed in t'e RTC )s one +or t'e en+or*e3ent o+ t'e 9OA. Bein. /)sed on ) 2ritten instr-3ent, s-*' )*tion ')s )(re)d1 pres*ri/ed, respondent *()i3s. 1F S'e )dds t')t petitioners *o-(d not ')4e /een in *ontin-o-s possession o+ t'e s-/7e*t propert1 /e*)-se, -nder ) d-(1 not)ri5ed (e)se ).ree3ent, t'e1 ')4e /een p)1in. 'er ) 3ont'(1 rent)( +ee o+ P?@@, 2'i*' 2)s ()ter in*re)sed to PF@@. *E)#TA T2o ,-estions need to /e )ns2ered to reso(4e t'e present *)se; n)3e(1, A1B 2'et'er Cristo/)(0s tit(e to t'e propert1 is 4)(id; )nd A8B 2'et'er t'e Porti*s )re in possession o+ t'e pre3ises, ) +)*t t')t 2o-(d render t'e )*tion +or ,-ietin. o+ tit(e i3pres*ripti/(e. V)(idit1 o+ Tit(e T'e CA 'e(d t')t t'e )*tion +or t'e ,-ietin. o+ tit(e *o-(d not prosper, /e*)-se Cristo/)(0s tit(e to t'e propert1 2)s )3p(1 s-pported /1 e4iden*e. Arti*(e CIG o+ t'e Ci4i( Code pro4ides )s +o((o2s> $W'ene4er t'ere is ) *(o-d on tit(e to re)( propert1 or )n1 interest t'erein, /1 re)son o+ )n1 instr-3ent, re*ord, *()i3, en*-3/r)n*e or pro*eedin. 2'i*' is )pp)rent(1 4)(id or e++e*ti4e /-t is in tr-t' )nd in +)*t in4)(id, ine++e*ti4e, 4oid)/(e, or -nen+or*e)/(e, )nd 3)1 /e pre7-di*i)( to s)id tit(e, )n )*tion 3)1 /e /ro-.'t to re3o4e s-*' *(o-d or to ,-iet t'e tit(e. $An )*tion 3)1 )(so /e /ro-.'t to pre4ent ) *(o-d +ro3 /ein. *)st -pon tit(e to re)( propert1 or )n1 interest t'erein.$ S-its to ,-iet tit(e )re *')r)*teri5ed )s pro*eedin.s ,-)si in re3. 1E Te*'ni*)((1, t'e1 )re neit'er in re3 nor in person)3. In )n )*tion ,-)si in re3, )n indi4id-)( is n)3ed )s de+end)nt. 8@ %o2e4er, -n(i6e s-its in re3, ) ,-)si in re3 7-d.3ent is *on*(-si4e on(1 /et2een t'e p)rties. 81 ener)((1, t'e re.istered o2ner o+ ) propert1 is t'e proper p)rt1 to /rin. )n )*tion to ,-iet tit(e. %o2e4er, it ')s /een 'e(d t')t t'is re3ed1 3)1 )(so /e )4)i(ed o+ /1 ) person ot'er t')n t'e re.istered o2ner /e*)-se, in t'e Arti*(e reprod-*ed )/o4e, $tit(e$ does not ne*ess)ri(1 re+er to t'e ori.in)( or tr)ns+er *erti+i*)te o+ tit(e. 88 T'-s, ()*6 o+ )n )*t-)( *erti+i*)te o+ tit(e to ) propert1 does not ne*ess)ri(1 /)r )n )*tion to ,-iet tit(e. As 2i(( /e s'o2n ()ter, petitioners ')4e not t-rned o4er )nd ')4e t'-s ret)ined t'eir tit(e to t'e propert1.

On t'e ot'er ')nd, t'e *()i3 o+ respondent *)nnot /e s-st)ined. T'e tr)ns+er o+ o2ners'ip o+ t'e pre3ises in 'er +)4or 2)s s-/7e*t to t'e s-spensi4e *ondition stip-()ted /1 t'e p)rties in p)r).r)p' = o+ t'e 9OA, 2'i*' st)tes )s +o((o2s> $=. T')t 2'i(e t'e /)()n*e o+ P1??,@@@.@@ ')s not 1et /een +-((1 p)id t'e !IRST PARTY OWNERS s')(( ret)in t'e o2ners'ip o+ t'e )/o4e des*ri/ed p)r*e( o+ ()nd to.et'er 2it' its i3pro4e3ents /-t t'e SECON# PARTY BUYER s')(( ')4e t'e ri.'t to *o((e*t t'e 3ont'(1 rent)(s d-e on t'e +irst door A1=:AB o+ t'e s)id )p)rt3ent;$ 8= T'e )/o4e:*ited pro4ision *')r)*teri5es t'e ).ree3ent /et2een t'e p)rties )s ) *ontr)*t to se((, not ) *ontr)*t o+ s)(e. O2ners'ip is ret)ined /1 t'e 4endors, t'e Porti*s; it 2i(( not /e p)ssed to t'e 4endee, t'e Cristo/)(s, -nti( t'e +-(( p)13ent o+ t'e p-r*')se pri*e. S-*' p)13ent is ) positi4e s-spensi4e *ondition, )nd +)i(-re to *o3p(1 2it' it is not ) /re)*' o+ o/(i.)tion; it is 3ere(1 )n e4ent t')t pre4ents t'e e++e*ti4it1 o+ t'e o/(i.)tion o+ t'e 4endor to *on4e1 t'e tit(e. 8C In s'ort, -nti( t'e +-(( pri*e is p)id, t'e 4endor ret)ins o2ners'ip. TIC#S* T'e 3ere iss-)n*e o+ t'e Certi+i*)te o+ Tit(e in +)4or o+ Cristo/)( did not 4est o2ners'ip in 'er. Neit'er did it 4)(id)te t'e )((e.ed )/so(-te p-r*')se o+ t'e (ot. Ti3e )nd ti3e ).)in, t'is Co-rt ')s stressed t')t re.istr)tion does not 4est, /-t 3ere(1 ser4es )s e4iden*e o+, tit(e. O-r ()nd re.istr)tion ()2s do not .i4e t'e 'o(ders )n1 /etter tit(e t')n t')t 2'i*' t'e1 )*t-)((1 ')4e prior to re.istr)tion. 8? Under Arti*(e 1?CC o+ t'e Ci4i( Code, 3ere re.istr)tion is not eno-.' to )*,-ire ) ne2 tit(e. ood +)it' 3-st *on*-r. 8G C(e)r(1, respondent ')s not 1et +-((1 p)id t'e p-r*')se pri*e. %en*e, )s (on. )s it re3)ins -np)id, s'e *)nnot +ei.n .ood +)it'. S'e is )(so pre*(-ded +ro3 )ssertin. o2ners'ip ).)inst petitioners. T'e )ppe(()te *o-rt0s +indin. t')t s'e ')d ) 4)(id tit(e to t'e propert1 3-st, t'ere+ore, /e set )side. Contin-o-s Possession T'e iss-e o+ 2'et'er t'e Porti*s ')4e /een in )*t-)(, *ontin-o-s possession o+ t'e pre3ises is ne*ess)ri(1 ) ,-estion o+ +)*t. We((:entren*'ed is t'e r-(e t')t +indin.s o+ +)*t o+ t'e Co-rt o+ Appe)(s, 2'en s-pported /1 s-/st)nti)( e4iden*e, )re +in)( )nd *on*(-si4e )nd 3)1 not /e re4ie2ed on )ppe)(. 8I T'is Co-rt +inds no *o.ent re)son to dist-r/ t'e CA0s +indin.s s-st)inin. t'ose o+ t'e tri)( *o-rt, 2'i*' 'e(d t')t petitioners ')d /een in *ontin-o-s possession o+ t'e pre3ises. !or t'is re)son, t'e )*tion to ,-iet tit(e ')s not pres*ri/ed. W%ERE!ORE, t'e Petition is RANTE#. T'e *')((en.ed #e*ision )nd Reso(-tion o+ t'e Co-rt o+ Appe)(s )re REVERSE# )nd SET ASI#E. T'e #e*ision o+ t'e RTC o+ V)(en5-e() Cit1 in Ci4i( C)se No. CE=?:V:EG, d)ted Septe3/er 8=, 1EEE, is 'ere/1 REINSTATE#. No prono-n*e3ent )s to *osts. )#*%IC SO OR#ERE#. S)ndo4)(: -tierre5, Coron), C)rpio:9or)(es )nd )r*i), DD., *on*-r. ; .R. No. 1G?FFE. Septe3/er 8@, 8@@?.< SACOBIA %ILLS #EVELOP9ENT CORPORATION )nd DAI9E C. "OA, petitioners, 4s. ALLAN U. TY, respondent. S)nti).o K S)nti).o +or petitioners. #-()1 P).-ns)n K T1 L)2 O++i*es +or respondent. SYLLABUS

1. CIVIL LAW; SPECIAL CONTRACTS; SALES; CONTRACT TO SELL; T%E !ULL PAY9ENT O! T%E PURC%ASE PRICE PARTA"ES O! A SUSPENSIVE CON#ITION, T%E NON:!UL!ILL9ENT O! W%IC% PREVENTS T%E OBLI ATION TO SELL !RO9 ARISIN . & ;T<'e eJe*-tion o+ t'e deed o+ )/so(-te s)(e )nd ot'er pertinent do*-3ents s')(( /e 3)de on(1 -pon +-(( p)13ent o+ t'e p-r*')se pri*e. T'e ter3s o+ t'e ).ree3ent /et2een S)*o/i) )nd T1 *)n /e ded-*ed, not on ) +or3)( do*-3ent (i6e ) deed o+ s)(e, /-t +ro3 ) series o+ *orresponden*e )nd )*ts si.ni+1in. t'e p)rties0 intention to enter into ) *ontr)*t. T'e )/sen*e o+ ) +or3)( deed o+ *on4e1)n*e is ) stron. indi*)tion t')t S)*o/i) did not intend to tr)ns+er tit(e -nti( respondent s')(( ')4e *o3p(ete(1 *o3p(ied 2it' 'is *orre()ti4e o/(i.)tion o+ p)1in. t'e *ont)*t pri*e. Sin*e t'e ).ree3ent /et2een S)*o/i) )nd T1 is ) *ontr)*t to se((, t'e +-(( p)13ent o+ t'e p-r*')se pri*e p)rt)6es o+ ) s-spensi4e *ondition, t'e non:+-(+i((3ent o+ 2'i*' pre4ents t'e o/(i.)tion to se(( +ro3 )risin. )nd o2ners'ip is ret)ined /1 t'e se((er 2it'o-t +-rt'er re3edies /1 t'e /-1er. C#%S)* 8. I#.; I#.; I#.; I#.; NATURE. & In ) *ontr)*t to se((, t'e prospe*ti4e se((er does not *onsent to tr)ns+er o2ners'ip o+ t'e propert1 to t'e /-1er -nti( t'e ')ppenin. o+ )n e4ent, 2'i*' +or present p-rposes, is t'e +-(( p)13ent o+ t'e p-r*')se pri*e. W')t t'e se((er ).rees or o/(i.es 'i3se(+ to do is to +-(+i(( 'is pro3ise to se(( t'e s-/7e*t propert1 2'en t'e entire )3o-nt o+ t'e p-r*')se pri*e is de(i4ered to 'i3. Upon t'e +-(+i((3ent o+ t'e s-spensi4e *ondition, o2ners'ip 2i(( not )-to3)ti*)((1 tr)ns+er to t'e /-1er )(t'o-.' t'e propert1 3)1 ')4e /een pre4io-s(1 de(i4ered to 'i3. T'e prospe*ti4e se((er sti(( ')s to *on4e1 tit(e to t'e prospe*ti4e /-1er /1 enterin. into ) *ontr)*t o+ )/so(-te s)(e. =. I#.; I#.; I#.; W%EN A SALE IS 9A#E SUBDECT TO A SUSPENSIVE CON#ITION, PER!ECTION IS %A# ONLY !RO9 T%E 9O9ENT T%E CON#ITION IS !UL!ILLE#. & ;W<'en ) s)(e is 3)de s-/7e*t to ) s-spensi4e *ondition, per+e*tion is ')d on(1 +ro3 t'e 3o3ent t'e *ondition is +-(+i((ed. C. I#.; OBLI ATIONS, A NON:ELISTENT OBLI ATION CANNOT BE A SUBDECT O! RESCISSION. & ;T<'ere *)n /e no res*ission -nder Arti*(e 11E1 o+ t'e Ci4i( Code /e*)-se -nti( t'e ')ppenin. o+ t'e *ondition, i.e., +-(( p)13ent o+ t'e *ontr)*t pri*e, S)*o/i)0s o/(i.)tion to de(i4er t'e tit(e )nd o/7e*t o+ t'e s)(e is not 1et eJt)nt. A non:eJistent o/(i.)tion *)nnot /e s-/7e*t o+ res*ission. Arti*(e 11E1 spe)6s o+ o/(i.)tions )(re)d1 eJistin., 2'i*' 3)1 /e res*inded in *)se one o+ t'e o/(i.ors +)i(s to *o3p(1 2it' 2')t is in*-3/ent -pon 'i3. ?. I#.; SPECIAL CONTRACTS; SALES; CONTRACT TO SELL; T%E PER!ECTION T%EREO! IVES RISE TO T%E BUYER0S OBLI ATION TO !UL!ILL T%E SUSPENSIVE CON#ITION AN# T%E CORRELATIVE OBLI ATION O! T%E SELLER TO CONVEY OWNERS%IP UPON CO9PLIANCE O! T%E SUSPENSIVE CON#ITION. & ;T<'e p)13ent /1 T1 o+ t'e reser4)tion +ee )s 2e(( )s t'e iss-)n*e o+ t'e postd)ted *'e*6s is s-/7e*t to t'e *ondition t')t S)*o/i) 2)s reser4in. tit(e -nti( +-(( p)13ent, 2'i*' is t'e essen*e o+ ) *ontr)*t to se((. T'e per+e*tion o+ t'is 6ind o+ *ontr)*t 2o-(d .i4e rise to t2o distin*t o/(i.)tions, n)3e(1, 1B t'e /-1er0s o/(i.)tion to +-(+i(( t'e s-spensi4e *ondition, i.e., t'e +-(( p)13ent o+ t'e *ontr)*t pri*e )s in t'e inst)nt *)se, )nd, 8B t'e *orre()ti4e o/(i.)tion o+ t'e se((er to *on4e1 o2ners'ip -pon *o3p(i)n*e o+ t'e s-spensi4e *ondition. E)*%SA #ECISION YNARES:SANTIA O, D p>

T'is petition +or re4ie2 on *ertior)ri 1 )ss)i(s t'e A-.-st 1E, 8@@C de*ision o+ t'e Co-rt o+ Appe)(s in CA: .R. CV No. IGEFI, 8 2'i*' re4ersed )nd set )side t'e No4e3/er 8E, 8@@8 de*ision = o+ t'e Re.ion)( Tri)( Co-rt o+ 9)ni(), Br)n*' CG, )nd its O*to/er 8F, 8@@C reso(-tion C den1in. re*onsider)tion t'ereo+. T'e )nte*edent +)*ts s'o2 t')t petitioner S)*o/i) %i((s #e4e(op3ent Corpor)tion AS)*o/i)B is t'e de4e(oper o+ Tr-e Nort' o(+ )nd Co-ntr1 C(-/ ATr-e Nort'B (o*)ted inside t'e C()r6 Spe*i)( E*ono3i* Mone in P)3p)n.) 2'i*' /o)sts o+ )3enities t')t in*(-de ) .o(+ *o-rse, *(-/'o-se, sports *o3p(eJ )nd se4er)( 4)*)tion 4i(()s. S#A)TC On !e/r-)r1 18, 1EEI, respondent A(()n U. T1 2rote to S)*o/i) ) (etter eJpressin. 'is intention to )*,-ire one A1B C()ss A s')re o+ Tr-e Nort' )nd )**ordin.(1 p)id t'e reser4)tion +ee o+ P1F@,@@@.@@ )s e4iden*ed /1 PCI B)n6 C'e*6 No. @@=F@?=. ? T'ro-.' (etters d)ted 9)1 8F, 1EEI )nd D-(1 C, 1EEI, S)*o/i) )ss-red its s')re'o(ders t')t t'e de4e(op3ent o+ Tr-e Nort' 2)s pro*eedin. on s*'ed-(e; t')t t'e .o(+ *o-rse 2o-(d /e p()1)/(e /1 O*to/er 1EEE; t')t t'e En4iron3ent)( C(e)r)n*e Certi+i*)te AECCB /1 t'e #ep)rt3ent o+ En4iron3ent )nd N)t-r)( Reso-r*es A#ENRB )s 2e(( )s t'e Per3it to Se(( +ro3 t'e Se*-rities )nd EJ*')n.e Co33ission ASECB s'o-(d ')4e /een re(e)sed /1 O*to/er 1EEI; )nd t')t t'eir re.istr)tion deposits re3)ined int)*t in )n es*ro2 )**o-nt. G On Septe3/er 1, 1EEI, S)*o/i) )ppro4ed t'e p-r*')se )pp(i*)tion )nd 3e3/ers'ip o+ respondent +or PG@@,@@@.@@, s-/7e*t to *ert)in ter3s )nd *onditions. T'e noti*e o+ )ppro4)( pro4ided, inter )(i)> I Ter3s )nd Conditions 1. Appro4)( o+ )n )pp(i*)tion to p-r*')se .o(+N*o-ntr1 *(-/ s')res is s-/7e*ted to t'e +-(( p)13ent o+ t'e tot)( p-r*')se pri*e. S'o-(d t'e /-1er opt +or t'e de+erred p)13ent s*'e3e, )ppro4)( is s-/7e*t to o-r re*eipt o+ ) do2n p)13ent o+ )t (e)st =@H )nd t'e /)()n*e p)1)/(e in inst)((3ents o4er ) 3)Ji3-3 o+ e(e4en A11B 3ont's +ro3 t'e d)te o+ )pp(i*)tion, )nd *o4ered /1 postd)ted *'e,-es. 8. Yo-r reser4ed s')re s')(( /e *onsidered 2it'dr)2n )nd 3)1 /e dee3ed *)n*e((ed s'o-(d 1o- +)i( to sett(e 1o-r o/(i.)tion 2it'in +i+teen A1?B d)1s +ro3 d-e d)te, or +)i(-re to *o4er t'e 4)(-e o+ t'e postd)ted *'e,-es -pon t'eir 3)t-rit1, or 1o-r +)i(-re to iss-e t'e re,-ired postd)ted *'e,-es. In 2'i*' *)se, 2e s')(( reser4e t'e ri.'t to o++er t'e s)id s')res to ot'er interested p)rties. T'is )(so 3e)ns +or+eit-re o+ ?@H o+ t'e tot)( )3o-nt 1o- ')4e )(re)d1 p)id. =. We 2i(( -ndert)6e to eJe*-te t'e *orrespondin. s)(es do*-3entsN#eed o+ A/so(-te S)(e *o4erin. t'e reser4ed s')res -pon +-(( p)13ent o+ t'e tot)( p-r*')se pri*e. T'e Certi+i*)te o+ 9e3/ers'ip s')(( /e iss-ed t'ere)+ter. JJJ JJJ JJJ %o2e4er, on D)n-)r1 18, 1EEF, respondent noti+ied S)*o/i) t')t 'e is res*indin. t'e *ontr)*t )nd so-.'t re+-nd o+ t'e p)13ents )(re)d1 3)de d-e to t'e ()tter0s +)i(-re to *o3p(ete t'e pro7e*t on ti3e )s represented. In )n e++ort to )ss-re t'e respondent t')t t'e pro7e*t 2o-(d soon /e oper)tion)(, S)*o/i) 2rote 'i3 ) (etter d)ted 9)r*' 1@, 1EEF, st)tin. t')t t'e #ENR ')d iss-ed t'e re,-ired ECC on(1 on 9)r*' ?, 1EEF, )nd t')t t'e .o(+ *o-rse 2o-(d /e re)d1 +or -se /1 end o+ 1EEF. F On Apri( =, 1EEF, S)*o/i) ).)in 2rote t'e respondent )d4isin. 'i3 t')t t'e 1F:'o(e .o(+ *o-rse 2o-(d /e +-((1 oper)tion)( /1 s-33er o+ 1EEE. S)*o/i) )(so so-.'t to *o((e*t

+ro3 respondent t'e ()tter0s o-tst)ndin. /)()n*e o+ P1E@,E@E.@F 2'i*' 2)s *o4ered /1 +i4e A?B post d)ted *'e*6s. Not2it'st)ndin., respondent noti+ied S)*o/i) on Apri( 1I, 1EEF t')t 'e ')d stopped p)13ent on t'e +i4e A?B post d)ted *'e*6s )nd reiter)ted 'is de3)nd +or t'e re+-nd o+ 'is p)13ents 2'i*' )3o-nted to PC@E,@E@.E8. On D-ne 1G, 1EEE, respondent sent S)*o/i) ) (etter +or3)((1 res*indin. t'e *ontr)*t )nd de3)ndin. +or t'e re+-nd o+ t'e PC@E,@E@.E8 t'-s +)r p)id /1 'i3. B1 2)1 o+ rep(1, S)*o/i) in+or3ed respondent t')t it ')d ) no:re+-nd po(i*1, )nd t')t it ')d endorsed respondent to Cent-r1 Properties, In*. +or )ssist)n*e on t'e res)(e o+ 'is s')re to t'ird persons. T'-s, on D-(1 81, 1EEE, respondent +i(ed ) *o3p()int +or res*ission )nd d)3).es /e+ore t'e SEC /-t t'e *)se 2)s e4ent-)((1 tr)ns+erred to t'e Re.ion)( Tri)( Co-rt o+ 9)ni(), Br)n*' CG, p-rs-)nt to Ad3inistr)ti4e Cir*-()r A9 No. @@:11:@=. E On Apri( 1=, 8@@8, t'e tri)( *o-rt personne( *ond-*ted )n on:site o*-()r inspe*tion )nd in t'eir report, t'e1 3)de t'e +o((o2in. o/ser4)tions> . . . We 2ent -p )nd do2n t'e 'i((s on /o)rd t'e .o(+ *)rt, )nd ')4e seen t'e entire .o(+ *o-rse. T'e E 'o(es )re) )re )(re)d1 oper)tion)( )nd p()1)/(e, 2e ')4e seen t'e tee /)n6 A3o-nt soi(B *o(or *oded +().s, /(-e +or re.-()r .o(+ers, 2'ite +or senior .o(+ers )nd red +or ()dies .o(+ers. We ')4e seen )(( t'eir p()1in. )re)s 2'i*' )(( )ppe)red in order eJ*ept t'e 3)in *(-/'o-se 2'i*' is -nder.oin. +inis'in. to-*'es. Li6e2ise t'e ro)d (e)din. to t'e *(-/'o-se )re) is -nder.oin. p)4e3ent 2or6s )nd *on*retin.. We (e)rned +ro3 o-r to-r .-ide 9r. err1 Mo(et), Site S-per4isor, t')t t'e ti3et)/(e in +inis'in. )(( re3)inin. t'in.s Ae.. C(-/'o-se )nd t'e ro)d (e)din. to itB to /e done, )re in+(-en*ed or r)t'er, ')3pered /1 t'e pre4)i(in. 2e)t'er *ondition. S-*' t')t 2'en it r)in, A2'i*' o+ten ')ppens in t'e )re) d-rin. )+ternoon or e)r(1 3ornin.B t'e1 *)nnot re)((1 p-s' t'r- 2it' t'e *onstr-*tion d-e to t'e soi( *ondition Ae)si(1 erodedB )nd s(opin. terr)in o+ t'e p()*e. EJ*ept, t'e *(-/'o-se, )(( see3 pri3 )nd proper +or .o(+ p()1in.. In +)*t, )**ordin. to 9r. Mo(et), t'e site ')s /een oper)tion)( sin*e D)n-)r1 8@@8. T'e +irst to-rn)3ent 2)s *ond-*ted on O*to/er 8@@@ )nd t'ere 2ere t'ree to-rn)3ents )(re)d1 too6 p()*e in t'e )re). JJJ JJJ JJJ In s-33)r1, 2e +o-nd not'in. )3iss +or one not to /e )/(e to p()1 )nd en7o1 .o(+ to t'e +-((est, eJ*ept )s e)r(ier s)id t'e *(-/'o-se. 1@ On No4e3/er 8E, 8@@8, t'e tri)( *o-rt rendered 7-d.3ent in +)4or o+ petitioners, t'e de*ret)( portion o+ 2'i*' re)ds> W%ERE!ORE, t'e *o3p()int is 'ere/1 dis3issed 2it'o-t prono-n*e3ent )s to *osts. I+ t'e p()inti++ desires to *ontin-e 2it' t'e )*,-isition o+ t'e s')re, 'e 3)1 do so /1 p)1in. t'e /)()n*e o+ t'e )*,-isition pri*e o+ One %-ndred Ninet1 T'o-s)nd Ninet1 Pesos )nd Ten Cent)4os AP1E@,@E@.1@B 2it'o-t interest 2it'in t'irt1 A=@B d)1s +ro3 t'e +in)(it1 o+ t'is de*ision, ot'er2ise, 'e +or+eits 'is p)13ents. IT IS SO OR#ERE#. 11 T'e tri)( *o-rt +o-nd t')t t'e *ontr)*t /et2een t'e p)rties did not 2)rr)nt t')t t'e .o(+ *o-rse )nd *(-/'o-se 2o-(d /e *o3p(eted 2it'in ) *ert)in period o+ ti3e to entit(e respondent to res*ind. It )(so noted t')t t'e *o3p(etion o+ t'e pro7e*t 2)s s-/7e*t to t'e iss-)n*e o+ )n ECC )nd t'e )ppro4)( /1 t'e SEC o+ t'e re.istr)tion o+ non:propriet)r1 .o(+ *(-/ s')res, 2'i*' is /e1ond S)*o/i)0s *ontro(.

T'e )ppe(()te *o-rt, in its de*ision d)ted A-.-st 1E, 8@@C, disposed o+ t'e )ppe)( )s +o((o2s> W%ERE!ORE, t'e )ppe)(ed No4e3/er 8E, 8@@8 de*ision o+ t'e Re.ion)( Tri)( Co-rt o+ 9)ni(), Br)n*' CG, is 'ere/1 REVERSE# )nd SET ASI#E, )nd ) ne2 one is 'ere/1 entered 2it' t'is Co-rt 'ere/1 CON!IR9IN t'e RESCISSION o+ t'e *ontr)*t o+ p-r*')se o+ one A1B C()ss A propriet)r1 s')re o+ Tr-e Nort' o(+ )nd Co-ntr1 C(-/ )s e(e*ted *'oi*e /1 p()inti++:)ppe(()nt T1, t'e )..rie4ed p)rt1, )nd 'ere/1 #IRECTIN de+end)nt:)ppe((ee SACOBIA to> 1B Re+-nd to t'e p()inti++:)ppe(()nt A(()n U. T1 t'e )3o-nt o+ PC@E,@E@.8@ )nd )(( p)13ents 3)de /1 'i3 t'-s +)r on t'e TRUE NORT% s')re, 2it' (e.)( interest o+ 18H per )nn-3 +ro3 D-(1 81, 1EEE, t'e d)te o+ t'e +i(in. o+ t'e *o3p()int 2it' t'e SEC, -nti( +-((1 p)id; 8B Ret-rn t'e +i4e post:d)ted *'e*6s o+ t'e p()inti++:)ppe(()nt )3o-ntin. to P1E@,E@F.@F; =B P)1 *osts o+ t'e s-it. SO OR#ERE#. 18 T'e Co-rt o+ Appe)(s ).reed 2it' t'e tri)( *o-rt t')t S)*o/i) 2)s in de()1 in t'e per+or3)n*e o+ its o/(i.)tion to respondent. As s-*', T1 *o-(d proper(1 res*ind t'e *ontr)*t, or de3)nd spe*i+i* per+or3)n*e 2it' d)3).es, or de3)nd +or d)3).es )(one. It 'e(d t'o-.' t')t t'e +)i(-re o+ t'e #ENR to iss-e t'e ECC on ti3e is ) 4)(id .ro-nd to red-*e t'e d)3).es *()i3ed /1 T1. It )(so r-(ed t')t S)*o/i) is estopped +ro3 )ssertin. t')t t'ere 2)s no *o3p(etion d)te +or t'e pro7e*t )s no (ess t')n its *')ir3)n )nno-n*ed t'e pro7e*ted *o3p(etion d)tes. C#E)AI Petitioners0 3otion +or re*onsider)tion 2)s denied, 'en*e t'e inst)nt petition +or re4ie2 on *ertior)ri 2'i*' r)ises t'e iss-e o+ 2'et'er t'e *ontr)*t entered into /1 t'e p)rties 3)1 /e 4)(id(1 res*inded -nder Arti*(e 11E1 o+ t'e Ci4i( Code. S)*o/i) *ontends t')t it 2)s not in /re)*' o+ t'e *ontr)*t )s t'e Intent to P-r*')se, t'e Contr)*t o+ P-r*')se, )nd t'e Noti*e o+ Appro4)( to P-r*')se S')res o+ Tr-e Nort', do not *ont)in )n1 spe*i+i* d)te )s to 2'en t'e .o(+ *o-rse )nd *o-ntr1 *(-/ 2o-(d /e *o3p(eted. It )r.-es t')t respondent s'o-(d ')4e 6no2n t'e ris6s in4o(4ed in t'is 6ind o+ pro7e*t; t'e *onstr-*tion /ein. *ontin.ent on t'e iss-)n*e o+ t'e ECC /1 t'e #ENR )nd t'e p)13ent o+ t'e /-1ers o+ t'eir s')re. On t'e ot'er ')nd, respondent *()i3s t')t S)*o/i)0s )r.-3ents r)ise ne2 3)tters 2'i*' 2o-(d 2)rr)nt t'e re4ers)( o+ t'e de*ision rendered /1 t'e Co-rt o+ Appe)(s. %e insists t')t S)*o/i) +)i(ed to *o3p(ete t'e pro7e*t on ti3e 2'i*' entit(es 'i3 to res*ind t'e *ontr)*t in )**ord)n*e 2it' Arti*(e 11E1 o+ t'e Ci4i( Code. %e +-rt'er )r.-es t')t t'e de()1 in t'e *o3p(etion o+ t'e pro7e*t is *(e)r(1 est)/(is'ed /1 t'e +)*t t')t t'ere ')4e /een no s-/st)nti)( 2or6 done on t'e site, p)rti*-()r(1 on t'e *(-/'o-se, despite t'e ()pse o+ ne)r(1 C:1e)rs +ro3 t'e iss-)n*e o+ t'e ECC on 9)r*' ?, 1EEF. T'e petition is 3eritorio-s. In reso(4in. t'e present *ontro4ers1, t'e (o2er *o-rts 3ere(1 )ss-3ed t')t t'e de()1 in t'e *o3p(etion o+ t'e .o(+ *o-rse 2)s t'e de*isi4e +)*tor in deter3inin. t'e propriet1 or i3propriet1 o+ res*indin. t'e *ontr)*t. Yet, *on+-sion *o-(d ')4e /een )4oided ')d t'ere /een ) 3ore t'oro-.' s*r-tin1 o+ t'e n)t-re o+ t'e *ontr)*t entered into /1 t'e *ontendin. p)rties.

In t'e noti*e o+ )ppro4)(, 2'i*' e3/odies t'e ter3s )nd *onditions o+ t'e ).ree3ent, S)*o/i) si.ni+ied its intent to ret)in t'e o2ners'ip o+ t'e propert1 -nti( s-*' ti3e t')t t'e respondent ')s +-((1 p)id t'e p-r*')se pri*e. T'is *ondition pre*edent is *')r)*teristi* o+ ) *ontr)*t to se((. T'e intention o+ t'e *ontr)*tin. p)rties is in+er)/(e +ro3 t'e +o((o2in. pro4isions, to 2it> TER9S AN# CON#ITIONS 1. Appro4)( o+ )n )pp(i*)tion to p-r*')se .o(+N*o-ntr1 *(-/ s')res is s-/7e*ted to t'e +-(( p)13ent o+ t'e tot)( p-r*')se pri*e. S'o-(d t'e /-1er opt +or t'e de+erred p)13ent s*'e3e, )ppro4)( is s-/7e*t to o-r re*eipt o+ ) do2n p)13ent o+ )t (e)st =@H )nd t'e /)()n*e p)1)/(e in inst)((3ents o4er ) 3)Ji3-3 o+ e(e4en A11B 3ont's +ro3 t'e d)te o+ )pp(i*)tion, )nd *o4ered /1 postd)ted *'e,-es. 8. Yo-r reser4ed s')re s')(( /e *onsidered 2it'dr)2n )nd 3)1 /e dee3ed *)n*e((ed s'o-(d 1o- +)i( to sett(e 1o-r o/(i.)tion 2it'in +i+teen A1?B d)1s +ro3 d-e d)te, or +)i(-re to *o4er t'e 4)(-e o+ t'e postd)ted *'e,-es -pon t'eir 3)t-rit1, or 1o-r +)i(-re to iss-e t'e re,-ired postd)ted *'e,-es. In 2'i*' *)se, 2e s')(( reser4e t'e ri.'t to o++er t'e s)id s')res to ot'er interested p)rties. T'is )(so 3e)ns +or+eit-re o+ ?@H o+ t'e tot)( )3o-nt 1o- ')4e )(re)d1 p)id. =. We s')(( -ndert)6e to eJe*-te t'e *orrespondin. s)(es do*-3entsN#eed o+ A/so(-te S)(e *o4erin. t'e reser4ed s')res -pon +-(( p)13ent o+ t'e tot)( p-r*')se pri*e. T'e Certi+i*)te o+ 9e3/ers'ip s')(( /e iss-ed t'ere)+ter. C(e)r(1, t'e )ppro4)( o+ t'e )pp(i*)tion 'in.ed on t'e +-(( p)13ent o+ t'e tot)( p-r*')se pri*e. In +)*t, S)*o/i) eJp(i*it(1 reser4ed t'e ri.'t to ret)in tit(e o4er t'e s')re pendin. +-(( s)tis+)*tion o+ t'e p-r*')se pri*e. T'e noti*e o+ )ppro4)( (i6e2ise stip-()ted t')t t'e reser4)tion s')(( /e dee3ed 2it'dr)2n or *)n*e((ed in *)se respondent +)i(s to sett(e 'is o/(i.)tion 2it'in 1? d)1s +ro3 t'e d-e d)te or *o4er t'e 4)(-e o+ t'e *'e*6s -pon t'eir 3)t-rit1. T'-s, S)*o/i) reser4ed t'e ri.'t to -ni()ter)((1 res*ind t'e *ontr)*t in t'e e4ent t'e respondent +)i(s to *o3p(1 2it' 'is o/(i.)tion o+ re3ittin. t'e +-(( p-r*')se pri*e 2it'in t'e de)d(ine. In +)*t, S)*o/i), )+ter ')4in. *)n*e((ed t'e ).ree3ent, *)n o++er t'e s')re to ot'er interested p)rties. In )ddition, t'e eJe*-tion o+ t'e deed o+ )/so(-te s)(e )nd ot'er pertinent do*-3ents s')(( /e 3)de on(1 -pon +-(( p)13ent o+ t'e p-r*')se pri*e. T'e ter3s o+ t'e ).ree3ent /et2een S)*o/i) )nd T1 *)n /e ded-*ed, not on ) +or3)( do*-3ent (i6e ) deed o+ s)(e, /-t +ro3 ) series o+ *orresponden*e )nd )*ts si.ni+1in. t'e p)rties0 intention to enter into ) *ontr)*t. T'e )/sen*e o+ ) +or3)( deed o+ *on4e1)n*e is ) stron. indi*)tion t')t S)*o/i) did not intend to tr)ns+er tit(e -nti( respondent s')(( ')4e *o3p(ete(1 *o3p(ied 2it' 'is *orre()ti4e o/(i.)tion o+ p)1in. t'e *ont)*t pri*e. Sin*e t'e ).ree3ent /et2een S)*o/i) )nd T1 is ) *ontr)*t to se((, t'e +-(( p)13ent o+ t'e p-r*')se pri*e p)rt)6es o+ ) s-spensi4e *ondition, t'e non:+-(+i((3ent o+ 2'i*' pre4ents t'e o/(i.)tion to se(( +ro3 )risin. )nd o2ners'ip is ret)ined /1 t'e se((er 2it'o-t +-rt'er re3edies /1 t'e /-1er. In C'en. 4. en)to, 1= 2e eJp()ined t'e n)t-re o+ ) *ontr)*t to se(( )nd its (e.)( i3p(i*)tions in t'is 2ise> In ) Contr)*t to Se((, t'e p)13ent o+ t'e p-r*')se pri*e is ) positi4e s-spensi4e *ondition, t'e +)i(-re o+ 2'i*' is not ) /re)*', *)s-)( or serio-s, /-t ) sit-)tion t')t pre4ents t'e o/(i.)tion o+ t'e 4endor to *on4e1 tit(e +ro3 )*,-irin. )n o/(i.)tor1 +or*e. It is one 2'ere t'e ')ppenin. o+ t'e e4ent .i4es rise to )n o/(i.)tion. T'-s, +or its non:+-(+i((3ent t'ere 2i(( /e no *ontr)*t to spe)6 o+, t'e o/(i.or ')4in. +)i(ed to per+or3 t'e s-spensi4e

*ondition 2'i*' en+or*es ) 7-ridi*)( re()tion. In +)*t 2it' t'is *ir*-3st)n*e, t'ere *)n /e no res*ission o+ )n o/(i.)tion t')t is sti(( non:eJistent, t'e s-spensi4e *ondition not ')4in. o**-rred )s 1et. E3p')sis s'o-(d /e 3)de t')t t'e /re)*' *onte3p()ted in Arti*(e 11E1 o+ t'e Ne2 Ci4i( Code is t'e o/(i.or0s +)i(-re to *o3p(1 2it' )n o/(i.)tion )(re)d1 eJt)nt, not ) +)i(-re o+ ) *ondition to render /indin. t')t o/(i.)tion. In ) *ontr)*t to se((, t'e prospe*ti4e se((er does not *onsent to tr)ns+er o2ners'ip o+ t'e propert1 to t'e /-1er -nti( t'e ')ppenin. o+ )n e4ent, 2'i*' +or present p-rposes, is t'e +-(( p)13ent o+ t'e p-r*')se pri*e. W')t t'e se((er ).rees or o/(i.es 'i3se(+ to do is to +-(+i(( 'is pro3ise to se(( t'e s-/7e*t propert1 2'en t'e entire )3o-nt o+ t'e p-r*')se pri*e is de(i4ered to 'i3. Upon t'e +-(+i((3ent o+ t'e s-spensi4e *ondition, o2ners'ip 2i(( not )-to3)ti*)((1 tr)ns+er to t'e /-1er )(t'o-.' t'e propert1 3)1 ')4e /een pre4io-s(1 de(i4ered to 'i3. T'e prospe*ti4e se((er sti(( ')s to *on4e1 tit(e to t'e prospe*ti4e /-1er /1 enterin. into ) *ontr)*t o+ )/so(-te s)(e. 1C A**ordin. to Tr-e Nort' P)13ent S*'ed-(e, 1? respondent0s *'e*6s d)ted +ro3 O*to/er 18, 1EEI -nti( D)n-)r1 18, 1EEF 2ere 3)r6ed )s st)(e. %is +)i(-re to *o4er t'e 4)(-e o+ t'e *'e*6s )nd /1 iss-in. ) stop p)13ent order e++e*ti4e(1 )/)ted t'e per+e*tion o+ t'e *ontr)*t. !or it is -nderstood t')t 2'en ) s)(e is 3)de s-/7e*t to ) s-spensi4e *ondition, per+e*tion is ')d on(1 +ro3 t'e 3o3ent t'e *ondition is +-(+i((ed. 1G As s'o2n, T1 did not p)1 t'e +-(( p-r*')se pri*e 2'i*' is 'is o/(i.)tion -nder t'e *ontr)*t to se((, t'ere+ore, it *)nnot /e s)id t')t S)*o/i) /re)*'ed its o/(i.)tion. No o/(i.)tions )rose on its p)rt /e*)-se respondent0s non:+-(+i((3ent o+ t'e s-spensi4e *ondition rendered t'e *ontr)*t to se(( ine++e*ti4e )nd -nper+e*ted. Indeed, t'ere *)n /e no res*ission -nder Arti*(e 11E1 1I o+ t'e Ci4i( Code /e*)-se -nti( t'e ')ppenin. o+ t'e *ondition, i.e. +-(( p)13ent o+ t'e *ontr)*t pri*e, S)*o/i)0s o/(i.)tion to de(i4er t'e tit(e )nd o/7e*t o+ t'e s)(e is not 1et eJt)nt. A non:eJistent o/(i.)tion *)nnot /e s-/7e*t o+ res*ission. Arti*(e 11E1 spe)6s o+ o/(i.)tions )(re)d1 eJistin., 2'i*' 3)1 /e res*inded in *)se one o+ t'e o/(i.ors +)i(s to *o3p(1 2it' 2')t is in*-3/ent -pon 'i3. As e)r(ier dis*-ssed, t'e p)13ent /1 T1 o+ t'e reser4)tion +ee )s 2e(( )s t'e iss-)n*e o+ t'e postd)ted *'e*6s is s-/7e*t to t'e *ondition t')t S)*o/i) 2)s reser4in. tit(e -nti( +-(( p)13ent, 2'i*' is t'e essen*e o+ ) *ontr)*t to se((. T'e per+e*tion o+ t'is 6ind o+ *ontr)*t 2o-(d .i4e rise to t2o distin*t o/(i.)tions, n)3e(1, 1B t'e /-1er0s o/(i.)tion to +-(+i(( t'e s-spensi4e *ondition, i.e. t'e +-(( p)13ent o+ t'e *ontr)*t pri*e )s in t'e inst)nt *)se, )nd, 8B t'e *orre()ti4e o/(i.)tion o+ t'e se((er to *on4e1 o2ners'ip -pon *o3p(i)n*e o+ t'e s-spensi4e *ondition. In t'e present *)se, respondent0s +)i(-re to +-(+i(( t'is s-spensi4e *ondition pre4ented t'e per+e*tion o+ t'e *ontr)*t to se((. Wit' )n ine++e*ti4e *ontr)*t, T1 ')d not )*,-ired t'e st)t-s o+ ) s')re'o(der /-t re3)ined, )t 3ost, ) prospe*ti4e in4estor. In t'e )/sen*e o+ ) 7-ridi*)( tie /et2een t'e p)rties, T1 *)nnot *()i3 t'e ri.'ts )nd pri4i(e.es )**orded to S)*o/i)0s +-((:+(ed.ed 3e3/ers )nd s')reo2ners, in*(-din. t'e +-(( en7o13ent o+ t'e )3enities /ein. o++ered. Un+ort-n)te(1 +or T1, 'e *)nnot )4)i( o+ res*ission )s en4isioned /1 Arti*(e 11E1 o+ t'e Ci4i( Code. %o2e4er, 'e *)n 2it'dr)2 'is in4est3ent s-/7e*t to t'e restri*tions -nder t'e ter3s )nd *onditions pertinent to ) rene.in. in4estor. E4en )ss-3in. )r.-endo t')t t'e de()1 in t'e *o3p(etion o+ t'e .o(+ *o-rse )nd *(-/'o-se 2)s )ttri/-t)/(e to S)*o/i), respondent ')d not re+-ted to t'is Co-rt0s s)tis+)*tion t'e tri)( *o-rt0s deni)( o+ s-*' *()i3 -pon its +indin. t')t, )3on. ot'er t'in.s, t'e p)rties did not 2)rr)nt t'e *o3p(etion o+ t'e pro7e*t 2it'in ) *ert)in period o+ ti3e.

As e)r(1 )s D)n-)r1 18, 1EEF, respondent ')d noti+ied S)*o/i) o+ 'is intention to res*ind t'e *ontr)*t on t'e .ro-nd t')t t'ere 2)s -nre)son)/(e de()1 in t'e *o3p(etion o+ t'e .o(+ *o-rse )nd *(-/'o-se. Yet, e4iden*e s'o2s t')t e4en prior t'ereto, or on 9)1 8F, 1EEI, S)*o/i) )(re)d1 in+or3ed its in4estors, in*(-din. t'e respondent, t')t t'e +-(( *o3p(etion o+ t'e pro7e*t 2)s eJpe*ted /1 3id:1EEE. P)tent(1, respondent0s *()i3 is pre3)t-re /1 one 1e)r )nd ) ')(+, i+ re*6oned +ro3 t'e eJpe*ted ti3e o+ *o3p(etion )s +oreseen /1 S)*o/i). 9oreo4er, respondent 2)s 2e(( )2)re o+ t'e ris6 o+ de()1 in t'e *o3p(etion o+ t'e pro7e*t *onsiderin. t')t 'e 2)s )pprised /e+ore')nd o+ s-*' de()1 d-e to t'e /e()ted iss-)n*e o+ t'e proper do*-3ents. It )ppe)rs, 'o2e4er, t')t S)*o/i) is not re)((1 intent on *)n*e((in. T10s reser4)tion. E4en )+ter it 2)s noti+ied /1 T1 t')t 'e 2)s intendin. to res*ind t'e *ontr)*t, )nd ')d in +)*t iss-ed ) stop:p)13ent order, S)*o/i) 3ere(1 de+erred t'e deposit o+ T10s *'e*6s in )n e++ort to reso(4e t'e iss-e, inste)d o+ *)n*e((in. t'e reser4)tion in )**ord)n*e 2it' t'e ter3s o+ t'e noti*e o+ )ppro4)(. S-/se,-ent(1, it so-.'t to *o((e*t +ro3 T1 'is re3)inin. o/(i.)tions. It )(so re+erred T1 to its 3)r6etin. )r3 i+ T1 is so 3inded to se(( 'is ri.'ts to t'ird p)rties. To t'is eJtent, t'e tri)( *o-rt *orre*t(1 ordered T1 to p)1 t'e re3)inin. /)()n*e i+ 'e so desires, ot'er2ise, 'e +or+eits ')(+ o+ 'is p)13ents, p-rs-)nt to t'e ter3s o+ t'e noti*e o+ )ppro4)(. W%ERE!ORE, t'e petition is RANTE#. T'e de*ision d)ted A-.-st 1E, 8@@C o+ t'e Co-rt o+ Appe)(s in CA: .R. CV No. IGEFI )nd its reso(-tion d)ted O*to/er 8F, 8@@C, )re REVERSE# )nd SET ASI#E. Respondent0s *o3p()int +or res*ission o+ *ontr)*t )nd d)3).es in Ci4i( C)se No. @1:EEGEG is #IS9ISSE#. %e is OR#ERE# to PAY to S)*o/i) %i((s #e4e(op3ent Corpor)tion t'e )3o-nt o+ Pesos> One %-ndred Ninet1 T'o-s)nd Nine %-ndred Nine )nd Ei.'t Cent)4os AP1E@,E@E.@FB 2it'o-t interest 2it'in t'irt1 A=@B d)1s +ro3 +in)(it1 o+ t'is de*ision; ot'er2ise, +i+t1 per*ent A?@HB o+ 'is tot)( p)13ents s')(( /e +or+eited. *%ITCS SO OR#ERE#. #)4ide, Dr., C.D., Q-is-3/in., C)rpio )nd A5*-n), DD., *on*-r.