FIRST DIVISION

MANUEL C. PAGTALUNAN, G.R. No. 147695

Petitioner,
Present:

PUNO, C.J., Chairperson,
- versus - SANDOVAL-GUTIERREZ,
CORONA,
AZCUNA, and
GARCIA, JJ.
RUFINA DELA CRUZ VDA. Prou!"ated:
DE MANZANO,
Res#ondent$ Se#te%er &', ())*

+-----------------------------------------------------------------------------------------+


DECISION

AZCUNA, J.:


T,is is a #etition -or revie. on certiorari under Ru!e /0 o- t,e Ru!es o-
Court o- t,e Court o- A##ea!s1 2CA3 De4ision #rou!"ated on O4to%er '), ()))
and its Reso!ution dated 5ar4, (', ())& den6in" #etitioner1s otion -or
re4onsideration$ T,e De4ision o- t,e CA a--ired t,e De4ision o- t,e Re"iona!
Tria! Court 2RTC3 o- 5a!o!os, 7u!a4an, dated 8une (0, &999 disissin" t,e 4ase o-
un!a.-u! detainer -or !a4: o- erit$

T,e -a4ts are as -o!!o.s:


On 8u!6 &9, &9*/, Patri4io Pa"ta!unan 2Patri4io3, #etitioner1s ste#-at,er and
#rede4essor-in-interest, entered into a Contra4t to Se!! .it, res#ondent, .i-e o-
Patri4io1s -orer e4,ani4, Teodoro 5an;ano, .,ere%6 t,e -orer a"reed to se!!,
and t,e !atter to %u6, a ,ouse and !ot .,i4, -ored ,a!- o- a #ar4e! o- !and,
4overed %6 Trans-er Certi-i4ate o- Tit!e 2TCT3 No$ T-&))(9 2no. TCT No$
RT099(9 <T-(0/**'=3, .it, an area o- ('> s?uare eters$ T,e 4onsideration o-
P&*,@)) .as a"reed to %e #aid in t,e -o!!o.in" anner: P&,0)) as do.n#a6ent
u#on e+e4ution o- t,e Contra4t to Se!!, and t,e %a!an4e to %e #aid in e?ua! ont,!6
insta!!ents o- P&0) on or %e-ore t,e !ast da6 o- ea4, ont, unti! -u!!6 #aid$

It .as a!so sti#u!ated in t,e 4ontra4t t,at res#ondent 4ou!d iediate!6
o44u#6 t,e ,ouse and !otA t,at in 4ase o- de-au!t in t,e #a6ent o- an6 o- t,e
insta!!ents -or 9) da6s a-ter its due date, t,e 4ontra4t .ou!d %e autoati4a!!6
res4inded .it,out need o- Budi4ia! de4!aration, and t,at a!! #a6ents ade and a!!
i#roveents done on t,e #reises %6 res#ondent .ou!d %e 4onsidered as renta!s
-or t,e use and o44u#ation o- t,e #ro#ert6 or #a6ent -or daa"es su--ered, and
res#ondent .as o%!i"ed to #ea4e-u!!6 va4ate t,e #reises and de!iver t,e
#ossession t,ereo- to t,e vendor$

Petitioner 4!aied t,at res#ondent #aid on!6 P&(,90)$ S,e a!!e"ed!6 sto##ed
#a6in" a-ter De4e%er &9*9 .it,out an6 Busti-i4ation or e+#!anation$ 5oreover, in
a CKasunduanD
&
<&= dated Nove%er &@, &9*9, res#ondent %orro.ed P',))) -ro
Patri4io #a6a%!e in one 6ear eit,er in one !u# su #a6ent or %6 insta!!ents,
-ai!in" .,i4, t,e %a!an4e o- t,e !oan .ou!d %e added to t,e #rin4i#a! su%Be4t o- t,e
ont,!6 aorti;ations on t,e !and$

& <&= T,e 5TC De4ision stated t,at #!ainti-- 2#etitioner3 never su%itted a 4o#6 o- t,e
Kasunduan in eviden4e$
Last!6, #etitioner asserted t,at .,en res#ondent 4eased #a6in" ,er
insta!!ents, ,er status o- %u6er .as autoati4a!!6 trans-ored to t,at o- a !essee$
T,ere-ore, s,e 4ontinued to #ossess t,e #ro#ert6 %6 ere to!eran4e o- Patri4io and,
su%se?uent!6, o- #etitioner$

On t,e ot,er ,and, res#ondent a!!e"ed t,at s,e #aid ,er ont,!6 insta!!ents
re!i"ious!6, unti! soetie in &9@) .,en Patri4io 4,an"ed ,is ind and o--ered to
re-und a!! ,er #a6ents #rovided s,e .ou!d surrender t,e ,ouse$ S,e re-used$
Patri4io t,en started ,arassin" ,er and %e"an deo!is,in" t,e ,ouse #ortion %6
#ortion$ Res#ondent aditted t,at s,e -ai!ed to #a6 soe insta!!ents a-ter
De4e%er &9*9, %ut t,at s,e resued #a6in" in &9@) unti! ,er %a!an4e d.ind!ed to
P0,>0)$ S,e 4!aied t,at des#ite severa! ont,s o- de!a6 in #a6ent, Patri4io
never sued -or eBe4tent and even a44e#ted ,er !ate #a6ents$

Res#ondent a!so averred t,at on Se#te%er &/, &9@&, s,e and Patri4io
si"ned an a"reeent 2E+,$ (3 .,ere%6 ,e 4onsented to t,e sus#ension o-
res#ondent1s ont,!6 #a6ents unti! De4e%er &9@&$ Eo.ever, even %e-ore t,e
!a#se o- said #eriod, Patri4io resued deo!is,in" res#ondent1s ,ouse, #ro#tin"
,er to !od"e a 4o#!aint .it, t,e Barangay Ca#tain .,o advised ,er t,at s,e 4ou!d
4ontinue sus#endin" #a6ent even %e6ond De4e%er '&, &9@& unti! Patri4io
returned a!! t,e ateria!s ,e too: -ro ,er ,ouse$ T,is Patri4io -ai!ed to do unti!
,is deat,$

Res#ondent did not den6 t,at s,e sti!! o.ed Patri4io P0,>0), %ut 4!aied t,at
s,e did not resue #a6in" ,er ont,!6 insta!!ent %e4ause o- t,e un!a.-u! a4ts
4oitted %6 Patri4io, as .e!! as t,e -i!in" o- t,e eBe4tent 4ase a"ainst ,er$ S,e
denied ,avin" an6 :no.!ed"e o- t,e Kasunduan o- Nove%er &@, &9*9$

Patri4io and ,is .i-e died on Se#te%er &*, &99( and on O4to%er &*, &99/,
res#e4tive!6$ Petitioner %e4ae t,eir so!e su44essor-in-interest #ursuant to a .aiver
%6 t,e ot,er ,eirs$ On 5ar4, 0, &99*, res#ondent re4eived a !etter -ro
#etitioner1s 4ounse! dated Fe%ruar6 (/, &99* deandin" t,at s,e va4ate t,e
#reises .it,in -ive da6s on t,e "round t,at ,er #ossession ,ad %e4oe un!a.-u!$
Res#ondent i"nored t,e deand$ T,e Punong Barangay -ai!ed to sett!e t,e dis#ute
ai4a%!6$

On A#ri! @, &99*, #etitioner -i!ed a Co#!aint -or un!a.-u! detainer a"ainst
res#ondent .it, t,e 5uni4i#a! Tria! Court 25TC3 o- Gui"uinto, 7u!a4an #ra6in"
t,at, a-ter ,earin", Bud"ent %e rendered orderin" res#ondent to iediate!6
va4ate t,e su%Be4t #ro#ert6 and surrender it to #etitionerA -or-eitin" t,e aount o-
P&(,90) in -avor o- #etitioner as renta!sA orderin" res#ondent to #a6 #etitioner t,e
aount o- P',))) under t,e Kasunduan and t,e aount o- P0)) #er ont, -ro
8anuar6 &9@) unti! s,e va4ates t,e #ro#ert6, and to #a6 #etitioner attorne61s -ees
and t,e 4osts$

On De4e%er ((, &99@, t,e 5TC rendered a de4ision in -avor o- #etitioner$
It stated t,at a!t,ou", t,e Contra4t to Se!! #rovides -or a res4ission o- t,e
a"reeent u#on -ai!ure o- t,e vendee to #a6 an6 insta!!ent, .,at t,e 4ontra4t
a4tua!!6 a!!o.s is #ro#er!6 tered a reso!ution under Art$ &&9& o- t,e Civi! Code$

T,e 5TC ,e!d t,at res#ondent1s -ai!ure to #a6 not a -e. insta!!ents 4aused
t,e reso!ution or terination o- t,e Contra4t to Se!!$ T,e !ast #a6ent ade %6
res#ondent .as on 8anuar6 9, &9@) 2E+,$ *&3$ T,erea-ter, res#ondent1s ri",t o-
#ossession ipso facto 4eased to %e a !e"a! ri",t, and %e4ae #ossession %6 ere
to!eran4e o- Patri4io and ,is su44essors-in-interest$ Said to!eran4e 4eased u#on
deand on res#ondent to va4ate t,e #ro#ert6$

T,e dis#ositive #ortion o- t,e 5TC De4ision reads:

G,ere-ore, a!! t,e -ore"oin" 4onsidered, Bud"ent is ,ere%6 rendered,
orderin" t,e de-endant:

a$ to va4ate t,e #ro#ert6 4overed %6 Trans-er Certi-i4ate o- Tit!e No$ T-
&))(9 o- t,e Re"ister o- Deeds o- 7u!a4an 2no. TCT No$ RT-099(9 o-
t,e Re"ister o- Deeds o- 7u!a4an3, and to surrender #ossession t,ereo- to
t,e #!ainti--A

%$ to #a6 t,e #!ainti-- t,e aount o- P&&',0)) re#resentin" renta!s -ro
8anuar6 &9@) to t,e #resentA

4$ to #a6 t,e #!ainti-- su4, aount o- renta!s, at P0))Hont,, t,at a6
%e4oe due a-ter t,e date o- Bud"ent, unti! s,e -ina!!6 va4ates t,e su%Be4t
#ro#ert6A

d$ to #a6 to t,e #!ainti-- t,e aount o- P(0,))) as attorne61s -ees$

SO ORDERED$
(
<(=


On a##ea!, t,e RTC o- 5a!o!os, 7u!a4an, in a De4ision dated 8une (0, &999,
reversed t,e de4ision o- t,e 5TC and disissed t,e 4ase -or !a4: o- erit$
A44ordin" to t,e RTC, t,e a"reeent 4ou!d not %e autoati4a!!6 res4inded sin4e
t,ere .as de!iver6 to t,e %u6er$ A Budi4ia! deterination o- res4ission ust %e
se4ured %6 #etitioner as a 4ondition #re4edent to 4onvert t,e #ossession de facto o-
res#ondent -ro !a.-u! to un!a.-u!$

T,e dis#ositive #ortion o- t,e RTC De4ision states:

GEEREFORE, Bud"ent is ,ere%6 rendered reversin" t,e de4ision o- t,e
5uni4i#a! Tria! Court o- Gui"uinto, 7u!a4an and t,e eBe4tent 4ase instead %e
disissed -or !a4: o- erit$
'
<'=

T,e otion -or re4onsideration and otion -or e+e4ution -i!ed %6 #etitioner
.ere denied %6 t,e RTC -or !a4: o- erit in an Order dated Au"ust &), &999$

(<(= Ro!!o, #$ &(($
'<'= Id$ at &/0$
T,erea-ter, #etitioner -i!ed a #etition -or revie. .it, t,e CA$

In a De4ision #rou!"ated on O4to%er '), ())), t,e CA denied t,e #etition
and a--ired t,e De4ision o- t,e RTC$ T,e dis#ositive #ortion o- t,e De4ision
reads:

GEEREFORE, t,e #etition -or revie. on 4ertiorari is Denied$ T,e
assai!ed De4ision o- t,e Re"iona! Tria! Court o- 5a!o!os, 7u!a4an dated (0 8une
&999 and its Order dated &) Au"ust &999 are ,ere%6 AFFIR5ED$

SO ORDERED$
/
</=

T,e CA -ound t,at t,e #arties, as .e!! as t,e 5TC and RTC -ai!ed to advert
to and to a##!6 Re#u%!i4 A4t 2R$A$3 No$ >00(, ore 4oon!6 re-erred to as t,e
5a4eda La., .,i4, is a s#e4ia! !a. ena4ted in &9*( to #rote4t %u6ers o- rea! estate
on insta!!ent #a6ents a"ainst onerous and o##ressive 4onditions$

T,e CA ,e!d t,at t,e Contra4t to Se!! .as not va!id!6 4an4e!!ed or res4inded
under Se4$ ' 2%3 o- R$A$ No$ >00(, and re4o"ni;ed res#ondent1s ri",t to 4ontinue
o44u#6in" uno!ested t,e #ro#ert6 su%Be4t o- t,e 4ontra4t to se!!$

/</= Id. at '*$
T,e CA denied #etitioner1s otion -or re4onsideration in a Reso!ution dated
5ar4, (', ())&$

Een4e, t,is #etition -or revie. on certiorari$

Petitioner 4ontends t,at:


A$ Res#ondent De!a Cru; ust %ear t,e 4onse?uen4es o- ,er de!i%erate
.it,,o!din" o-, and re-usa! to #a6, t,e ont,!6 #a6ent$ T,e Court o-
A##ea!s erred in a!!o.in" De!a Cru; .,o a4ted in %ad -ait, -ro
%ene-itin" under t,e 5a4eda La.$

7$ T,e Court o- A##ea!s erred in reso!vin" t,e issue on t,e a##!i4a%i!it6 o-
t,e 5a4eda La., .,i4, issue .as not raised in t,e #ro4eedin"s a quo$

C$ Assuin" arguendo t,at t,e RTC .as 4orre4t in ru!in" t,at t,e 5TC ,as
no Burisdi4tion over a res4ission 4ase, t,e Court o- A##ea!s erred in not
reandin" t,e 4ase to t,e RTC -or tria!$
0
<0=



Petitioner su%its t,at t,e 5a4eda La. su##orts and re4o"ni;es t,e ri",t o-
vendors o- rea! estate to 4an4e! t,e sa!e outside o- 4ourt, .it,out need -or a Budi4ia!
de4!aration o- res4ission, 4itin" Luzon Brokerage Co., Inc., v. Maritie Bui!ding
Co., Inc.
>
<>=
0<0= Id$ at @$
><>= No$ L-(0@@0, Nove%er &>, &9*@, @> SCRA ')0, '(*$

Petitioner 4ontends t,at res#ondent a!so ,ad ore t,an t,e "ra4e #eriods
#rovided under t,e 5a4eda La. .it,in .,i4, to #a6$ Under Se4$ '
*
<*= o- t,e said
!a., a %u6er .,o ,as #aid at !east t.o 6ears o- insta!!ents ,as a "ra4e #eriod o-
one ont, -or ever6 6ear o- insta!!ent #aid$ 7ased on t,e aount o- P&(,90)
.,i4, res#ondent ,ad a!read6 #aid, s,e is entit!ed to a "ra4e #eriod o- si+ ont,s
.it,in .,i4, to #a6 ,er un#aid insta!!ents a-ter De4e%er, &9*9$ Res#ondent
.as "iven ore t,an si+ ont,s -ro 8anuar6 &9@) .it,in .,i4, to sett!e ,er
un#aid insta!!ents, %ut s,e -ai!ed to do so$ Petitioner1s deand to va4ate .as sent
to res#ondent in Fe%ruar6 &99*$

T,ere is not,in" in t,e 5a4eda La., #etitioner asserts, .,i4, "ives t,e
%u6er a ri",t to #a6 arreara"es a-ter t,e "ra4e #eriods ,ave !a#sed, in t,e event o-
an inva!id deand -or res4ission$ T,e 5a4eda La. on!6 #rovides t,at a4tua!
4an4e!!ation s,a!! ta:e #!a4e a-ter ') da6s -ro re4ei#t o- t,e noti4e o- 4an4e!!ation
or deand -or res4ission and u#on -u!! #a6ent o- t,e 4as, surrender va!ue to t,e
%u6er$

7 [7] R.A. No. 6552, Sec. 3. In all transactions or contracts involving the sale or financing of
real estate on installment paments, incl!"ing resi"ential con"omini!m apartments #!t e$cl!"ing
in"!strial lots, commercial #!il"ings an" sales to tenants !n"er [R.A No. 3%&&], as amen"e" #
[R.A No. 63%'], (here the #!er has pai" at least t(o ears of installments, the #!er is entitle"
to the follo(ing rights in case he "efa!lts in the pament of s!ccee"ing installments)
*a+ ,o pa, (itho!t a""itional interest, the !npai" installments "!e (ithin the total grace
perio" earne" # him, (hich is here# fi$e" at the rate of one month grace perio" for
ever one ear of installment paments ma"e) Provided, ,hat this right shall #e e$ercise"
# the #!er onl once in ever five ears of the life of the contract an" its e$tensions, if
an.
Petitioner 4ontends t,at ,is deand !etter dated Fe%ruar6 (/, &99* s,ou!d %e
4onsidered t,e noti4e o- 4an4e!!ation sin4e t,e deand !etter in-ored res#ondent
t,at s,e ,ad C!on" 4eased to ,ave an6 ri",t to #ossess t,e #reises in ?uestion due
to <,er= -ai!ure to #a6 .it,out Busti-ia%!e 4ause$D In su##ort o- ,is 4ontention, ,e
4ited Layug v. Interediate "ppe!!ate Court
@
<@= .,i4, ,e!d t,at Ct,e additiona!
-ora!it6 o- a deand on <t,e se!!er1s= #art -or res4ission %6 notaria! a4t .ou!d
a##ear, in t,e #reises, to %e ere!6 4ir4uitous and 4onse?uent!6 su#er-!uous$D Ee
stated t,at in Layug, t,e se!!er a!read6 ade a .ritten deand u#on t,e %u6er$

In addition, #etitioner asserts t,at .,atever 4as, surrender va!ue res#ondent
is entit!ed to ,ave %een a##!ied and ust %e a##!ied to renta!s -or ,er use o- t,e
,ouse and !ot a-ter De4e%er, &9*9 or a-ter s,e sto##ed #a6ent o- ,er
insta!!ents$

Petitioner ar"ues t,at assuin" Patri4io a44e#ted res#ondent1s de!a6ed
insta!!ents in &9@&, su4, a4t 4annot #revent t,e 4an4e!!ation o- t,e Contra4t to
Se!!$ Insta!!ents a-ter &9@& .ere sti!! un#aid and t,e a##!i4a%!e "ra4e #eriods
under t,e 5a4eda La. on t,e un#aid insta!!ents ,ave !on" !a#sed$ Res#ondent
4annot %e a!!o.ed to ,ide %e,ind t,e 5a4eda La.$ S,e a4ted .it, %ad -ait, and
ust %ear t,e 4onse?uen4es o- ,er de!i%erate .it,,o!din" o- and re-usa! to a:e
t,e ont,!6 #a6ents$

@<@= No$ L-*0'>/, Nove%er (', &9@@, &>* SCRA >(*, >'0$
Petitioner a!so 4ontends t,at t,e a##!i4a%i!it6 o- t,e 5a4eda La. .as never
raised in t,e #ro4eedin"s %e!o.A ,en4e, it s,ou!d not ,ave %een a##!ied %6 t,e CA
in reso!vin" t,e 4ase$

T,e Court is not #ersuaded$

T,e CA 4orre4t!6 ru!ed t,at R$A No$ >00(, .,i4, "overns sa!es o- rea! estate
on insta!!ent, is a##!i4a%!e in t,e reso!ution o- t,is 4ase$

T,is 4ase ori"inated as an a4tion -or un!a.-u! detainer$ Res#ondent is
a!!e"ed to %e i!!e"a!!6 .it,,o!din" #ossession o- t,e su%Be4t #ro#ert6 a-ter t,e
terination o- t,e Contra4t to Se!! %et.een Patri4io and res#ondent$ It is, t,ere-ore,
in4u%ent u#on #etitioner to #rove t,at t,e Contra4t to Se!! ,ad %een 4an4e!!ed in
a44ordan4e .it, R$A$ No$ >00($

T,e #ertinent #rovision o- R$A$ No$ >00( reads:

Se4$ '$ In a!! transa4tions or 4ontra4ts invo!vin" t,e sa!e or -inan4in" o-
rea! estate on insta!!ent #a6ents, in4!udin" residentia! 4ondoiniu
a#artents %ut e+4!udin" industria! !ots, 4oer4ia! %ui!din"s and sa!es to
tenants under Re#u%!i4 A4t Nu%ered T,irt6-ei",t ,undred -ort6--our as
aended %6 Re#u%!i4 A4t Nu%ered Si+t6-t,ree ,undred ei",t6-nine, .,ere t,e
%u6er ,as #aid at !east t.o 6ears o- insta!!ents, t,e %u6er is entit!ed to t,e
-o!!o.in" ri",ts in 4ase ,e de-au!ts in t,e #a6ent o- su44eedin" insta!!ents:

2a3 To #a6, .it,out additiona! interest, t,e un#aid insta!!ents due .it,in t,e
tota! "ra4e #eriod earned %6 ,i, .,i4, is ,ere%6 -i+ed at t,e rate o- one
ont, "ra4e #eriod -or ever6 one 6ear o- insta!!ent #a6ents ade:
Provided, T,at t,is ri",t s,a!! %e e+er4ised %6 t,e %u6er on!6 on4e in
ever6 -ive 6ears o- t,e !i-e o- t,e 4ontra4t and its e+tensions, i- an6$

2%3 If t! "o#t$%"t &' "%#"!((!), t! '!((!$ '%(( $!f*#) to t! +*,!$ t!
"%' '*$$!#)!$ -%(*! of t! .%,/!#t' o# t! .$o.!$t, e?uiva!ent to
-i-t6 #er4ent o- t,e tota! #a6ents ade and, a-ter -ive 6ears o-
insta!!ents, an additiona! -ive #er4ent ever6 6ear %ut not to e+4eed ninet6
#er4ent o- t,e tota! #a6ents ade: Provided, T%t t! %"t*%(
"%#"!((%t&o# of t! "o#t$%"t '%(( t%0! .(%"! %ft!$ t&$t, )%,' f$o/
$!"!&.t +, t! +*,!$ of t! #ot&"! of "%#"!((%t&o# o$ t! )!/%#) fo$
$!'"&''&o# of t! "o#t$%"t +, % #ot%$&%( %"t %#) *.o# f*(( .%,/!#t of
t! "%' '*$$!#)!$ -%(*! to t! +*,!$$
9
<9=


R$A$ No$ >00(, ot,er.ise :no.n as t,e CRea!t6 Insta!!ent 7u6er
Prote4tion A4t,D re4o"ni;es in 4onditiona! sa!es o- a!! :inds o- rea! estate
2industria!, 4oer4ia!, residentia!3 t,e ri",t o- t,e se!!er to 4an4e! t,e 4ontra4t
u#on non-#a6ent o- an insta!!ent %6 t,e %u6er, .,i4, is si#!6 an event t,at
#revents t,e o%!i"ation o- t,e vendor to 4onve6 tit!e -ro a4?uirin" %indin" -or4e$
&)
<&)= T,e Court a"rees .it, #etitioner t,at t,e 4an4e!!ation o- t,e Contra4t to Se!!
a6 %e done outside t,e 4ourt #arti4u!ar!6 .,en t,e %u6er a"rees to su4,
4an4e!!ation$

Eo.ever, t,e 4an4e!!ation o- t,e 4ontra4t %6 t,e se!!er ust %e in
a44ordan4e .it, Se4$ ' 2%3 o- R$A$ No$ >00(, .,i4, re?uires a notaria! a4t o-
res4ission and t,e re-und to t,e %u6er o- t,e -u!! #a6ent o- t,e 4as, surrender
9<9= E#,asis su##!ied$
&)<&)= Lea#o v. Court of "ppea!s, G$R$ No$ &(9)&@, Nove%er &0, ())&, '>9 SCRA '>, /0$
va!ue o- t,e #a6ents on t,e #ro#ert6$ A4tua! 4an4e!!ation o- t,e 4ontra4t ta:es
#!a4e a-ter ') da6s -ro re4ei#t %6 t,e %u6er o- t,e noti4e o- 4an4e!!ation or t,e
deand -or res4ission o- t,e 4ontra4t %6 a notaria! a4t and u#on -u!! #a6ent o- t,e
4as, surrender va!ue to t,e %u6er$

7ased on t,e re4ords o- t,e 4ase, t,e Contra4t to Se!! .as not va!id!6
4an4e!!ed or res4inded under Se4$ ' 2%3 o- R$A$ No$ >00($

First, Patri4io, t,e vendor in t,e Contra4t to Se!!, died on Se#te%er &*,
&99( .it,out 4an4e!in" t,e Contra4t to Se!!$

Se4ond, #etitioner a!so -ai!ed to 4an4e! t,e Contra4t to Se!! in a44ordan4e
.it, !a.$

Petitioner 4ontends t,at ,e ,as 4o#!ied .it, t,e re?uireents o-
4an4e!!ation under Se4$ ' 2%3 o- R$A$ No$ >00($ Ee asserts t,at ,is deand !etter
dated Fe%ruar6 (/, &99* s,ou!d %e 4onsidered as t,e noti4e o- 4an4e!!ation or
deand -or res4ission %6 notaria! a4t and t,at t,e 4as, surrender va!ue o- t,e
#a6ents on t,e #ro#ert6 ,as %een a##!ied to renta!s -or t,e use o- t,e ,ouse and
!ot a-ter res#ondent sto##ed #a6ent a-ter 8anuar6 &9@)$

T,e Court, ,o.ever, -inds t,at t,e !etter
&&
<&&= dated Fe%ruar6 (/, &99*,
.,i4, .as .ritten %6 #etitioner1s 4ounse!, ere!6 ade -ora! deand u#on
res#ondent to va4ate t,e #reises in ?uestion .it,in -ive da6s -ro re4ei#t t,ereo-
sin4e s,e ,ad C!on" 4eased to ,ave an6 ri",t to #ossess t,e #reises + + + due to
<,er= -ai!ure to #a6 .it,out Busti-ia%!e 4ause t,e insta!!ent #a6ents + + +$D

C!ear!6, t,e deand !etter is not t,e sae as t,e noti4e o- 4an4e!!ation or
deand -or res4ission +, % #ot%$&%( %"t re?uired %6 R$A No$ >00($ Petitioner
4annot re!6 on Layug v. Interediate "ppe!!ate Court
&(
<&(= to su##ort ,is
4ontention t,at t,e deand !etter .as su--i4ient 4o#!ian4e$ Layug ,e!d t,at Ct,e
additiona! -ora!it6 o- a deand on <t,e se!!er1s= #art -or res4ission %6 notaria! a4t
.ou!d a##ear, in t,e #reises, to %e ere!6 4ir4uitous and 4onse?uent!6
su#er-!uousD sin4e t,e se!!er t,erein -i!ed an a4tion -or %##*(/!#t of "o#t$%"t,
.,i4, is a :indred 4on4e#t o- res4ission %6 notaria! a4t$
&'
<&'= Evident!6, t,e 4ase
o- un!a.-u! detainer -i!ed %6 #etitioner does not e+e#t ,i -ro 4o#!6in" .it,
t,e said re?uireent$

In addition, Se4$ ' 2%3 o- R$A$ No$ >00( re?uires re-und o- t,e 4as, surrender
va!ue o- t,e #a6ents on t,e #ro#ert6 to t,e %u6er %e-ore 4an4e!!ation o- t,e
4ontra4t$ T,e #rovision does not #rovide a di--erent re?uireent -or 4ontra4ts to
se!! .,i4, a!!o. #ossession o- t,e #ro#ert6 %6 t,e %u6er u#on e+e4ution o- t,e
&&<&&= Ro!!o, #$ /@$
&(<&(= $upra, note @$
&' <&'= %!ypia &ousing. Inc. v. Panasiatic 'rave! Corpporation, G$R$ No$ &/)/>@,
8anuar6 &>, ())', '90 SCRA (9@$
4ontra4t !i:e t,e instant 4ase$ Een4e, #etitioner 4annot insist on 4o#!ian4e .it,
t,e re?uireent %6 assuin" t,at t,e 4as, surrender va!ue #a6a%!e to t,e %u6er ,ad
%een a##!ied to renta!s o- t,e #ro#ert6 a-ter res#ondent -ai!ed to #a6 t,e
insta!!ents due$

T,ere %ein" no va!id 4an4e!!ation o- t,e Contra4t to Se!!, t,e CA 4orre4t!6
re4o"ni;ed res#ondent1s ri",t to 4ontinue o44u#6in" t,e #ro#ert6 su%Be4t o- t,e
Contra4t to Se!! and a--ired t,e disissa! o- t,e un!a.-u! detainer 4ase %6 t,e
RTC$

T,e Court notes t,at t,is 4ase ,as %een #endin" -or ore t,an ten 6ears$
7ot, #arties #ra6ed -or ot,er re!ie-s t,at are Bust and e?uita%!e under t,e #reises$
Een4e, t,e ri",ts o- t,e #arties over t,e su%Be4t #ro#ert6 s,a!! %e reso!ved to -ina!!6
dis#ose o- t,at issue in t,is 4ase$

Considerin" t,at t,e Contra4t to Se!! .as not 4an4e!!ed %6 t,e vendor,
Patri4io, durin" ,is !i-etie or %6 #etitioner in a44ordan4e .it, R$A$ No$ >00(
.,en #etitioner -i!ed t,is 4ase o- un!a.-u! detainer a-ter (( 6ears o- 4ontinuous
#ossession o- t,e #ro#ert6 %6 res#ondent .,o ,as #aid t,e su%stantia! aount o-
P&(,')) out o- t,e #ur4,ase #ri4e o- P&*,@)), t,e Court a"rees .it, t,e CA t,at it
is on!6 ri",t and Bust to a!!o. res#ondent to #a6 ,er arrears and sett!e t,e %a!an4e
o- t,e #ur4,ase #ri4e$

For res#ondent1s de!a6 in t,e #a6ent o- t,e insta!!ents, t,e Court, in its
dis4retion, and a##!6in" Arti4!e (()9
&/
<&/= o- t,e Civi! Code, a6 a.ard interest at
t,e rate o- >I #er annu
&0
<&0= on t,e un#aid %a!an4e 4onsiderin" t,at t,ere is no
sti#u!ation in t,e Contra4t to Se!! -or su4, interest$ For #ur#oses o- 4o#utin" t,e
!e"a! interest, t,e re4:onin" #eriod s,ou!d %e t,e -i!in" o- t,e 4o#!aint -or
un!a.-u! detainer on A#ri! @, &99*$

7ased on res#ondent1s eviden4e
&>
<&>= o- #a6ents ade, t,e 5TC -ound
t,at res#ondent #aid a tota! o- P&(,')) out o- t,e #ur4,ase #ri4e o- P&*,@))$
Een4e, res#ondent sti!! ,as a %a!an4e o- P0,0)), #!us !e"a! interest at t,e rate o- >I
#er annu on t,e un#aid %a!an4e startin" A#ri! @, &99*$

T,e t,ird issue is disre"arded sin4e #etitioner assai!s an ine+istent ru!in" o-
t,e RTC on t,e !a4: o- Burisdi4tion o- t,e 5TC over a res4ission 4ase .,en t,e
instant 4ase ,e -i!ed is -or un!a.-u! detainer$

&/ <&/= Art$ (()9$ I- t,e o%!i"ation 4onsists in t,e #a6ent o- a su o- one6, and t,e
de%tor in4urs in de!a6, t,e indenit6 -or daa"es, t,ere %ein" no sti#u!ation to t,e
4ontrar6, s,a!! %e t,e #a6ent o- t,e interest a"reed u#on, and in t,e a%sen4e o-
sti#u!ation, t,e !e"a! interest .,i4, is si+ #er4ent #er annu$
&0 <&0= (aos v. &erue!a, G$R$ No$ &/0''), O4to%er &/, ())0, /*' SCRA *9$
&><&>= E+,i%its 9 to *&, Re4ords, ##$ &/&-()($
12EREFORE, t,e De4ision o- t,e Court o- A##ea!s dated O4to%er '),
())) sustainin" t,e disissa! o- t,e un!a.-u! detainer 4ase %6 t,e RTC is
AFFIRMED .it, t,e -o!!o.in" MODIFICATIONS:

&$ Res#ondent Ru-ina De!a Cru; Vda$ de 5an;ano s,a!! #a6 #etitioner
5anue! C$ Pa"ta!unan t,e %a!an4e o- t,e #ur4,ase #ri4e in t,e aount
o- Five T,ousand Five Eundred Pesos 2P0,0))3 #!us interest at >I #er
annu -ro A#ri! @, &99* u# to t,e -ina!it6 o- t,is Bud"ent, and
t,erea-ter, at t,e rate o- &(I #er annuA

($ U#on #a6ent, #etitioner 5anue! C$ Pa"ta!unan s,a!! e+e4ute a Deed
o- A%so!ute Sa!e o- t,e su%Be4t #ro#ert6 and de!iver t,e 4erti-i4ate o-
tit!e in -avor o- res#ondent Ru-ina De!a Cru; Vda$ de 5an;anoA and

'$ In 4ase o- -ai!ure to #a6 .it,in >) da6s -ro -ina!it6 o- t,is De4ision,
res#ondent Ru-ina De!a Cru; Vda$ de 5an;ano s,a!! iediate!6
va4ate t,e #reises .it,out need o- -urt,er deand, and t,e
do.n#a6ent and insta!!ent #a6ents o- P&(,')) #aid %6 ,er s,a!!
4onstitute renta! -or t,e su%Be4t #ro#ert6$

No 4osts$

SO ORDERED$


ADOLFO S. AZCUNA
Asso4iate 8usti4e




1E CONCUR:





RE3NATO S. PUNO
C,ie- 8usti4e
C,air#erson




ANGELINA SANDOVAL4GUTIERREZ RENATO C. CORONA
Asso4iate 8usti4e Asso4iate 8usti4e





CANCIO C. GARCIA
Asso4iate 8usti4e




CERTIFICATION

Pursuant to Se4tion &', Arti4!e VIII o- t,e Constitution, it is ,ere%6 4erti-ied
t,at t,e 4on4!usions in t,e a%ove De4ision ,ad %een rea4,ed in 4onsu!tation %e-ore
t,e 4ase .as assi"ned to t,e .riter o- t,e o#inion o- t,e Court1s Division$




RE3NATO S. PUNO
C,ie- 8usti4e