RULES AS TO CONSENT Incapacity: consent may have been given, but the one giving it is incapacitated.

Art. 1489. All persons who are authorized in this Code to obligate themselves, may enter into a a. Absolute Incapacity – the party cannot give consent to any and all contract, which may
contract of sale, saving the modifications contained in the following articles. result in the contract being voidable or void.
Where necessaries are those sold and delivered to a minor or other person without capacity to b. Relative Incapacity – the party is prohibited from entering some specific transactions
act, he must pay a reasonable price therefor. Necessaries are those referred to in Article 290. with some persons and sometimes over specific things.
(1457a)
Minors and those without capacity to act: may enter into a valid contract of sale of
Art. 1490. The husband and the wife cannot sell property to each other, except: “necessaries” as provided under Art. 1489. Necessaries are those which are indispensable for
sustenance, dwelling, clothing and medical attendance.
(1) When a separation of property was agreed upon in the marriage settlements; or
(2) When there has been a judicial separation or property under Article 191. (1458a)
Examples of Relative Incapacity:
a. Husband and wife cannot sell property to each other, except:
Art. 1491. The following persons cannot acquire by purchase, even at a public or judicial
i. When a separation of property was agreed upon in the marriage settlements; or
auction, either in person or through the mediation of another:
ii. When there has been a judicial separation or property

b. The following persons cannot acquire by purchase, even at a public or judicial

(1) The guardian, the property of the person or persons who may be under his guardianship; auction, either in person or through the mediation of another:
(2) Agents, the property whose administration or sale may have been entrusted to them, unless i. The guardian, the property of the person or persons who may be under his guardianship;
the consent of the principal has been given; ii. Agents, the property whose administration or sale may have been entrusted to them,
unless the consent of the principal has been given;
(3) Executors and administrators, the property of the estate under administration; iii. Executors and administrators, the property of the estate under administration;
(4) Public officers and employees, the property of the State or of any subdivision thereof, or of iv. Public officers and employees, the property of the State or of any subdivision thereof, or
any government- owned or controlled corporation, or institution, the administration of of any government- owned or controlled corporation, or institution, the administration
which has been intrusted to them; this provision shall apply to judges and government of which has been intrusted to them; this provision shall apply to judges and
experts who, in any manner whatsoever, take part in the sale; government experts who, in any manner whatsoever, take part in the sale;
v. Justices, judges, prosecuting attorneys, clerks of superior and inferior courts, and other
(5) Justices, judges, prosecuting attorneys, clerks of superior and inferior courts, and other officers and employees connected with the administration of justice, the property and
officers and employees connected with the administration of justice, the property and rights in litigation or levied upon an execution before the court within whose
rights in litigation or levied upon an execution before the court within whose jurisdiction jurisdiction or territory they exercise their respective functions; this prohibition includes
or territory they exercise their respective functions; this prohibition includes the act of the act of acquiring by assignment and shall apply to lawyers, with respect to the
acquiring by assignment and shall apply to lawyers, with respect to the property and rights property and rights which may be the object of any litigation in which they may take
which may be the object of any litigation in which they may take part by virtue of their part by virtue of their profession.
profession. vi. Any others specially disqualified by law
(6) Any others specially disqualified by law. (1459a) vii. Example: Aliens are prohibited by the Constitution from acquiring lands in the
Philippines, except by succession or in case of a former natural born Filipino citizen
who has lost his citizenship.
 INSTALLMENT SALES
RECTO LAW - applies to a contract of sale of personal property the price of which is payable MACEDA LAW - or the Realty Installment Buyer Act (RA No. 6552), applies to a contract of
in installments. sale of residential realty on installments, where the buyer is given protection in case of failure to
pay installments. Similar to the Recto Law, the Maceda Law does not apply to sales “on credit”,
The law, however, does not apply to sales “on credit”, only sales in “installment.” It likewise
only ones in installment.
applies to contracts purporting to be leases of personal property with option to buy, when the
lessor has deprived the lessee of the possession or enjoyment of the thing.
RIGHTS OF THE BUYER UNDER THE MACEDA LAW
ALTERNATIVE REMEDIES OF THE SELLER: 1. If installments already paid are less than two years equivalent:
1. Exact fulfillment of the obligation, should the vendee fail to pay; a. Grace Period - pay without interest within 60 days. Note, however, that this right can
2. Cancel the sale, should the vendee's failure to pay cover two or more installments; only be applied once every 5 years.
3. Foreclose the chattel mortgage on the thing sold, if one has been constituted, should the b. The buyer may sell or assign his interest;
vendee's failure to pay cover two or more installments. c. Pay the entire balance.

The remedies are alternative. As such, if the seller/vendor invoked one, he can no longer
invoke any of the two remaining remedies. Any agreement to the contrary shall be void. 2. After two years’ worth of installment, the buyer will have the following additional
rights:
a. In addition to the 60-day grace period, the buyer shall have additional 1 month grace
period for every year of installment payments after the first 2 years installments;
FORFEITURE OF INSTALLMENTS IN CASE OF CANCELLATION:
b. If the seller will exercise his right to rescind the contract, he is required to first give
The 2nd option of cancelling the sale would entail mutual restitution by the parties. the Cash Surrender Value to the buyer.

General Rule: The seller is allowed to retain a reasonable amount of the purchase price already
Cash Surrender Value:
paid as compensation for the use of the thing (rent), or ALL of the amount paid only if there is a
i. Minimum of 50% of all payments (including downpayment) plus
forfeiture clause which entitles him to the purchase price already paid at the time of
ii. 5% after five years (55% after 6 years of payment); and
cancellation.
iii. 5% for every additional year thereafter upto a maximum of 90% (or 14 years of
Exception: the retention of ALL the purchase price would be unconscionable. instalment).

VOID STIPULATIONS:
FORECLOSURE OF THE CHATTEL MORTGAGE: 1. Stipulation as to interest or damages or penalty during the grace period

The 3rd option entails that the foreclosed mortgage is the mortgage on the personal property 2. Forfeiture clause

itself, and in case of deficiency of the foreclosure sale proceeds, the seller is NOT entitled to 3. Automatic cancellation or rescission upon default of the buyer

recover such, since recovery of the deficiency falls under option 1.

However, if what is foreclosed is another security or a mortgage on different property, the RESCISSION REQUIREMENTS: the rescission will take effect only after 30 days from
prohibition to collect the deficiency would not apply, since foreclosure of a mortgage of a complying with both:
different thing precisely falls under option 1 also. 1. Notice to be given to the buyer as to the intention to rescind
2. Payment of the cash surrender value
 OBLIGATIONS OF THE VENDOR SALE OR RETURN: where the goods are delivered to the buyer but the buyer has an option to
return the goods instead of paying the price, the ownership passes to the buyer but he may revest
A. To take care of the thing after the contract has been perfected, prior to delivery.
the ownership in the seller by returning or tendering the goods within the time fixed in the
contract, or when no time is fixed, within a reasonable time.

Loss of the thing pending delivery:

a. If the object is entirely lost - the contract shall be without any effect. Note that ownership transfers to the buyer upon delivery. As such, the buyer bears the risk of
loss once the goods are delivered.
b. If the thing is lost in part only, the buyer may choose between:
i. Withdrawing from the contract; and
ii. Demanding the remaining part, paying its price in proportion to total sum agreed upon.
SALE ON APPROVAL OR ON TRIAL OR ON SATISFACTION: Here, there is delivery of
c. The goods without the knowledge of the seller have perished in part or have wholly or in a the goods also, but no transfer of ownership yet. As such, the seller, being the owner, bears the
material part so deteriorated in quality as to be substantially changed in character, the buyer risk of loss.
may at his option treat the sale:
The ownership passes to the buyer:
i. As avoided; or
ii. As valid in all of the existing goods or in so much thereof as have not deteriorated, and as a. When he signifies his approval or acceptance to the seller or does any other act
binding the buyer to pay the agreed price for the goods in which the ownership will pass, adopting the transaction
if the sale was divisible.
b. If he does not signify his approval or acceptance to the seller, but retains the goods
without giving notice of rejection, then if a time has been fixed for the return of the
Risk of Loss: goods, on the expiration of such time, and, if no time has been fixed, on the expiration
of a reasonable time. What is a reasonable time is a question of fact.
General Rule: the thing perishes with the owner, following the principle of res perit domino.
Exceptions:
2. Obligation to pay taxes and incidents of the sale, unless otherwise agreed upon;
a. Stipulation
b. Security title - Where delivery of the goods has been made to the buyer or to a bailee 3. To warrant the thing (see Warranties);
for the buyer, in pursuance of the contract and the ownership in the goods has been
4. To transfer ownership.
retained by the seller merely to secure performance by the buyer of his obligations
under the contract, the goods are at the buyer's risk from the time of such delivery;
c. Delay in the delivery – whoever causes the delay shall bear the risk of loss.
Seller need not be the owner for validity of the contract: the seller need not be the owner and
the sale is still valid if he sold the thing in a capacity authorizing him to do so such as a
liquidator, executor, administrator, sheriff, or a notary (in case of pledge).
Note: the risk of loss is where it is important why there are distinctions in the following:
This is different from a pledge or mortgage which requires the pledger or mortgagor to be the
• Contract of Sale vs. Contract of Agency to Sell
absolute owner of the thing.
• Sale or Return vs. Sale on Approval/Trial/Satisfaction
SELLER IS NOT THE OWNER: B. To deliver the determinate or specific thing including the fruits from the moment
the obligation to deliver arises and the accessions and accessories thereof.
General Rule: the buyer acquires no better title to the goods than the seller had
Exceptions: In all of these exceptions, the buyer acquires GOOD TITLE to the object even if
the seller is not the owner. Delivery is the mode by which ownership is transferred. It is accomplished by placing the thing
in the control and possession of the vendee.
a. Seller is authorized by the owner – such as an agent.
MODES OF DELIVERY: THINGS
b. Seller had statutory or judicial authority to sell – such as a guardian, executor,
administrator, or court sheriff. a. Actual Delivery: The actual and physical transfer of the thing to the buyer.
b. Constructive Delivery
c. In cases of estoppel:
i. As to the owner: estoppel in pais - by his conduct or representation, he led the i. Traditio Longa Manu: literally, long-hand delivery, or by pointing to the thing
buyer to believe that the seller had authority to sell. sold accomplished by mere consent of the seller, ownership transfers to the
ii. As to the seller: estoppel by deed – if after the sale, the seller acquired buyer, because at the time of sale, the seller cannot transfer possession to the
ownership, such ownership automatically passes to the buyer as to the thing buyer, e.g., the thing is leased by another.
already delivered
ii. Consitutum Posessorium: at the time of sale, the seller is in possession and
d. Sale of an Apparent Owner: REQUISITES: remains in possession in another concept other than an owner, like that of a
lessee, depositary or borrower. E.g., sale lease-back.
i. There is apparent ownership
ii. Buyer in good faith and for value – the buyer had no knowledge of any defect in iii. Brevi Manu: or short hand delivery. When the buyer is in possession of the thing,
the seller’s title at the time of full payment (not only at the time of sale). in a concept other than that of an owner, at the time of sale, and remains in
iii. There must be a law from which apparent ownership may be had, such as: possession after sale, now as owner. E.g., a lessee who buys the thing leased.
1) PD 1529 which provides that those dealing with registered land need not iv. Symbolic Delivery: where the seller merely gives the key to a warehouse where
inquire beyond the title, also known as the mirror principle, unless the buyer the goods are located or in a sale of car, the delivery of the keys is symbolic
is required under the law to exercise the highest degree of diligence, e.g., delivery.
banks and public utility companies.
v. Execution of the Required Formality: by execution of a public instrument. This
2) Factor’s Act (agency) – so far as third persons are concerned, they only have
mode of delivery is available to both sale of rights and sale of things;
to rely on the power of attorney as written, they need not inquire into
limitations imposed by the principal to the agent not written. c. Delivery to a common carrier: when the parties so agreed that the seller will deliver
3) Art. 1518 – for goods covered by negotiable instruments. to the common carrier for ultimate delivery to the buyer. In this case, there is already
delivery upon receipt of the common carrier. EXCEPT:
e. Purchase from a Merchant Store, Market or Fair in good faith and for value: the
purpose of this exception is to facilitate commercial transactions so as not to degrade i. Ownership is reserved by the seller – such as if it is deliverable to the seller or
the trust in sales made through such stores. his agent.
ii. The seller reserved possession – goods are deliverable to the buyer, but
Right of buyer to reimbursement: One who has lost any movable or has been unlawfully possession of the bill of lading is with the seller.
deprived thereof, may recover it from the person in possession of the same. If the possessor of a iii. A Bill of Exchange is drawn by the seller against the buyer and the latter
movable lost or which the owner has been unlawfully deprived, has acquired it in good faith at a dishonors the same.
public sale, the owner cannot obtain its return without reimbursing the price paid therefor.
MODE OF DELIVERY: As to rights: RULES ON DOUBLE SALE
a. By execution of an instrument; MOVABLE PROPERTY: if the same movable is sold by the vendor to two or more vendees,
the one who has a better right over the thing shall be the first one to take possession in good
b. Quasi Traditio:
faith.
i. When the title of ownership is placed in the possession of the vendee (e.g.,
IMMOVABLE PROPERTY: if the same immovable property is sold by the vendor to two or
certificates of stock for sale of shares of stock);
more vendees, the one who has a better right over the thing shall be:
ii. By the use of the vendee of his rights with the vendor’s consent. (e.g., the vendee
1. The one to first register in good faith; if none,
of shares where the same has not been transferred in his name yet, with the
consent of the owner, through a proxy, he may exercise his rights as a 2. The one to first take possession in good faith; if none still,
stockholder)
3. The one with the oldest title.
TIME OF DELIVERY:
a. Stipulation of the parties;
“Good faith” pertains to the time of registration or possession not the time of perfection of
b. If no stipulation, within a reasonable time. sale: as such, if at the time of the second sale, the buyer had no knowledge of the prior sale, but
learns of it prior to registration or possession (if there is no registrant), he will NOT be
considered a registrant/possessor in good faith.
PLACE OF DELIVERY:
a. Stipulation of the parties;
BOTH SALES MUST BE VALID: In order for the Rules on Double Sale to apply, it
b. If no stipulation, by usage of trade; presupposes that both the sale are valid or at least voidable or rescissible, prior to annulment or
rescission.
c. If no stipulation nor usage of trade, the seller’s place of business;
d. If none, the seller’s residence.
e. However, in case of a contract of sale of specific goods, which to the knowledge of
the parties when the contract or the sale was made were in some other place, then
that place is the place of delivery.
 WARRANTIES
WARRANTIES: Any affirmation of fact or any promise by the seller relating to the thing is an Extent of Liability: First, it will depend whether the seller is in bad faith:
express warranty if the natural tendency of such affirmation or promise is to induce the buyer to
a. If the seller is in bad faith, he shall be liable for:
purchase the same, and if the buyer purchase the thing relying thereon.
i. Value of the thing sold at the time of eviction;
Opinion of the seller: is not understood to be a warranty unless the seller made such affirmation ii. Income or fruits, if he has been ordered to deliver them to the party who won the
or statement as an expert and it was relied upon by the buyer. suit against him;
iii. Costs of the suit which caused the eviction, and, in a proper case, those of the
Express Warranty: is an affirmation of fact or promise by the seller relating to the thing which
suit bought against the vendor for the warranty;
would induce the buyer to buy the same. However, those relating to opinions of the seller are
iv. Expenses of the contract, if the vendee has paid them;
not considered warranties unless they are made by experts and the buyer relies upon them.
v. Damages and interests and ornamental expenses.
Implied Warranties:
b. If the seller is in good faith, the liability of the vendor shall depend whether there is a
1. WARRANTY AGAINST EVICTION – that the seller has a right to sell the thing at the waiver executed by the buyer:
time when ownership is to pass, and that the buyer shall from that time have and enjoy i. If there is no waiver, the seller is liable for VICE above except Damages.
legal and peaceful possession of the thing; ii. If there is a waiver, the liability of the vendor shall depend whether the buyer is

Eviction requisites: aware of the risk of eviction:

a. The vendee is deprived of the whole or of a part of the thing purchased; 1) Consciente – the buyer is not aware of the risk, or without knowledge of the
b. By virtue of a final judgment defect in the title of the seller: seller is still liable but only for the VALUE of
c. The vendor is summoned in the suit for eviction at the instance of the vendee. the thing at the time of eviction;
d. Such judgment is based on:
2) Intencionada – the buyer was aware of the risk of eviction or of the defect
i. A right prior to the sale or in the title of the seller, the seller is no longer liable for anything.
ii. An act imputable to the vendor
Partial Loss: should the vendee lose only a part of the thing sold but the same is of such
importance, in relation to the whole, that he would not have bought it without said part, he may
Rules Applicable:
demand the rescission of the contract; but with the obligation to return the thing without other
a. The warranty applies even if there is no agreement to such effect; encumbrances that those which it had when he acquired it, instead of enforcing the vendor’s
b. The vendee need not appeal from the decision in order that the vendor may become liability for eviction.
liable for eviction.
Two or more things sold: the same rules as to partial loss shall apply:
c. When the adverse possession had been commenced before the sale but the
prescriptive period is completed after the transfer, the vendor shall not be liable for a. If they have been jointly sold for a lumpsum; or
eviction.
d. If the property is sold for non-payment of taxes due and not made known to the b. Even if they were sold for a separate price for each of them if it should appear that the
vendee before the sale, the vendor is liable for eviction. vendee would not have purchased one without the other.
e. The judgment debtor is also responsible for eviction in judicial sales, unless it is
otherwise decreed in the judgment.
f. The defendant vendee shall ask, within the time fixed in the Rules of Court for
answering the complaint, that the vendor be made a co-defendant.
 2. WARRANTY AGAINST HIDDEN DEFECTS OR OF QUALITY - the thing shall be Loss of the thing with hidden defect; liability of the seller:
free from any hidden faults or defects.
a. If the cause was the defect itself: the seller shall be liable for:
Hidden Defects: it would render the thing unfit for its intended use; or diminish its fitness for i. Price
such use to such extent that, had the vendee been aware thereof, he would not have acquired it ii. Expenses of the contract
or would have given a lower price for it. iii. Interest (if in good faith)
iv. Damages (if in bad faith)
Vendor not liable: in case:
b. If the cause of the loss is a fortuitous event or through the fault of the vendee, the
a. The defects are patent or those which may be visible; or
seller shall be liable to refund the price less the value at the time of loss, plus damages
b. Even if not visible, the vendee who is an expert, by reason of his trade or profession,
(if he was aware).
should have known.
Judicial sales: the above rules likewise apply to judicial sales, except the judgment detor shall
Warranty of Fitness of Goods: there is an implied warranty that the goods shall be reasonably
not be liable for damages.
fit for such purpose;
Prescriptive period for the remedies: is 6 months from delivery.
a. The buyer, expressly or by implication, makes known to the seller the particular
purpose for which the goods are acquired, and
b. It appears that the buyer relies on the seller's skill or judgment (whether he be the
Redhibitory Defects in animals is the hidden defect on animals that, even in case a
grower or manufacturer or not),
professional inspection has been made, should be of such nature that expert knowledge is not
In the case of contract of sale of a specified article under its patent or other trade name, there is sufficient to discover it.
no warranty as to its fitness for any particular purpose, unless there is a stipulation to the
But if the veterinarian, through ignorance or bad faith shall fail to discover or disclose it, he
contrary.
shall be liable for damages.
Warranty of Merchantable Quality: there is an implied warranty that the goods shall be of
Sale of more than 1 animal: General Rule: The redhibitory defect of one shall only give rise to
merchantable quality
its redhibition, and not of the others; Except: if the vendee would not have purchased the sound
a. Where the goods are bought by description animal or animals without the defective one, which is presumed when a team, yoke pair, or set is
b. From a seller who deals in goods of that description (whether he be the grower or bought, even if a separate price has been fixed for each one of the animals composing the same.
manufacturer or not),
No warranty: There is no warranty against hidden defects of animals sold at fairs or at public
In the case of a contract of sale by sample, if the seller is a dealer in goods of that kind, there is auctions, or of live stock sold as condemned.
an implied warranty that the goods shall be free from any defect rendering them unmerchantable
Void sale of animals:
which would not be apparent on reasonable examination of the sample.
a. The sale of animals suffering from contagious diseases shall be void.
b. If the use or service for which they are acquired has been stated in the contract, and
Remedies of the vendee: they are found to be unfit therefor.
Remedies and Prescriptive Period: Remedies of the vendee in case of sale of animals with
a. Withdraw from the contract plus damages;
redhibitory defects are similar to the remedies for breach of warranty against hidden
b. Accion quanti minoris or demand a proportionate reduction of the price plus damages.
defects; but he must make use thereof within the same period which has been fixed for the
exercise of the redhibitory action or 40 days.
Other Rules: EXTINGUISHMENT OF A CONTRACT OF SALE
a. If the animal should die within three days after its purchase, the vendor shall be liable Sales are extinguished by the same causes as all other obligations, and by conventional or legal
if the disease which cause the death existed at the time of the contract. redemption.
b. If the sale be rescinded, the animal shall be returned in the condition in which it was CONVENTIONAL REDEMPTION: otherwise known as “right of repurchase” shall take
sold and delivered, the vendee being answerable for any injury due to his negligence, place when the vendor reserves the right to repurchase the thing sold, with the obligation to
and not arising from the redhibitory fault or defect. return the price, expenses related thereto and useful and necessary expenses, and other
stipulations which may have been agreed upon.
c. Sale of large cattle is governed by special laws.
The sale, with a right of repurchase, is also known as pacto de retro sale.
Ownership: transfers to the vendee-a-retro upon delivery. However, this ownership is not
3. WARRANTY AGAINST NON-APPARENT ENCUMBRANCES: an encumbrance
absolute but only conditional. This is because the vendor-a-retro may be able to exercise the
(or an easement or servitude) is a burden imposed upon an immovable for the benefit of
right to repurchase and the ownership of the buyer will be terminated. Thus, it can be said that
another immovable belonging to a different owner. It is non-apparent, when there are no
the ownership of the vendee-a-retro is subject to a resolutory condition.
external indications of their existence.
The warranty against non-apparent encumbrances arises when the same is:
a. Not mentioned in the agreement; or Amount to be paid at the time the right is exercised:
b. Not recorded in the Registry of Property (now Registry of Deeds).
1. The purchase price;
In which case, the buyer has the following remedies, within 1 year, counted from: 2. The expenses of the contract, and any other legitimate payments made by reason of the
a. Ask for the rescission of the contract – from execution of the deed; sale; and
b. Ask for damages – from discovery. 3. Useful and necessary expenses (e.g., fencing of the land)
Not applicable to: the implied warranties are not applicable to a sheriff, auctioneer, mortgagee, Equitable Mortgage: a sale with a right of repurchase (or even a contract of absolute sale) is
pledgee or other person professing to sell by virtue of authority in fact or law, for the sale of a presumed to be an equitable mortgage in the following cases:
thing in which a third person has a legal or equitable interest.
1. When the price of a sale with right to repurchase is unusually inadequate;
2. When the vendor remains in possession as lessee or otherwise;
3. When upon or after the expiration of the right to repurchase another instrument
extending the period of redemption or granting a new period is executed;
4. When the purchaser retains for himself a part of the purchase price;
5. When the vendor binds himself to pay the taxes on the thing sold;
6. In any other case where it may be fairly inferred that the real intention of the parties is
that the transaction shall secure the payment of a debt or the performance of any other
obligation.
The remedy would be to ask for the reformation of the instrument purporting to be a contract of Multiple Parties
sale with right of repurchase or a contract of absolute sale.
1. SALE OF UNDIVIDED IMMOVABLE – vendee eventually acquires the whole; may
In case of doubt, a contract purporting to be a sale with right to repurchase shall be construed as compel the vendor to redeem the whole property.
an equitable mortgage.
2. SEVERAL PERSONS JOINTLY AND IN THE SAME CONTRACT: sell an
undivided immovable with a right of repurchase:
Period to exercise right of repurchase: a. SELLERS – can only redeem their share
b. BUYER – can compel redemption of the entire property; cannot be compelled to agree
1. That which was agreed upon which cannot exceed 10 years;
to a partial redemption
2. If no agreement as to the period, it shall be four years from the date of the contract. c. CO-OWNERS SOLD SEPARATELY – each can exercise his own right of
redemption and cannot be compelled to redeem the whole property.
3. The vendor may still exercise the right to repurchase within thirty days from the time
final judgment was rendered in a civil action on the basis that the contract was a true sale
with right to repurchase.
LEGAL REDEMPTION: is the right to be subrogated, upon the same terms and conditions
No Redemption/Repurchase was made: stipulated in the contract, in the place of one who acquires a thing by purchase or dation in
payment, or by any other transaction whereby ownership is transmitted by onerous title.
1. In case of real property, the consolidation of ownership in the vendee by virtue of the
failure of the vendor to pay the required amounts shall not be recorded in the Registry of The Right of Legal Redemption is available to:
Property without a judicial order, after the vendor has been duly heard.
1. Co-owners – a co-owner of a thing may exercise the right of redemption in case the
2. In case of personal property, the consolidation of ownership is by operation of law. shares of all the other co-owners or of any of them, are sold to a third person

By consolidation of ownership, it means that the ownership of the vendee becomes absolute and Subject property: may be movable or immovable property.
the resolutory condition is removed.
Amount to be paid for redemption: is the purchase price, unless the price of alienation is grossly
excessive, in which case, the redemptioner shall pay only a reasonable one.

Vendor’s Right of Repurchase: Multiple redemptioners: should two or more co-owners desire to exercise the right of
redemption, they may only do so in proportion to the share they may respectively have in the
1. The vendor may bring his action against every possessor whose right is derived from the thing owned in common
vendee, even if in the second contract no mention should have been made of the right to
repurchase, without prejudice to the provisions of the Mortgage Law and the Land 2. Owners of adjoining lands – have the right of redemption in case of transfers of land.
Registration Law with respect to third persons.
Rural Land; Requisites:
2. The vendee is subrogated to the vendor's rights and actions.
a. The subject is rural land;
3. The creditors of the vendor cannot make use of the right of redemption against the b. The land does not exceed one hectare;
vendee, until after they have exhausted the property of the vendor. c. The redemptioner is an owner of a land adjoining the subject rural land;
d. The adjacent lands is not separated by brooks, drains, ravines, roads and other
apparent servitudes for the benefit of other estates; and
e. The grantee/buyer owns a rural land;
Multiple redemptioners: in case two or more adjoining owners desire to exercise the right of
redemption at the same time:
a. The owner of the adjoining land of smaller area shall be preferred; and
b. Should both lands have the same area, the one who first requested redemption.

Redemption and Pre-emption of Urban Land; Requisites:

a. The subject is urban land;
b. The area of the land is so small and so situated that a major portion thereof cannot be
used for any practical purpose within a reasonable time, having been bought merely
for speculation;
c. The one exercising the right of redemption or pre-emption is an adjoining land
owner.

When redemption, when pre-emption:

a. Pre-emption is the right exercised by the adjoining land owner if the sale is NOT
YET perfected;
b. Redemption is the right exercised if the sale is already perfected.

Multiple persons exercising the right of redemption/pre-emption: the one whose intended use is
best justified shall be preferred.

PERIOD TO EXERCISE LEGAL RIGHT OF REDEMPTION: 30 days from NOTICE in

writing by the prospective vendor, or by the vendor. The deed of sale shall not be recorded in the
Registry of Property, unless accompanied by an affidavit of the vendor that he has given written
notice thereof to all possible redemptioners