Podcast
Questions and Answers
Why is the sale between Mr. Mat and Isabelo considered void?
Why is the sale between Mr. Mat and Isabelo considered void?
- The sale was not notarized.
- The authority of Isabelo was not in writing. (correct)
- The price discussed was not agreed upon.
- Mr. X was not present during the negotiation.
What is a requirement for the validity of a contract of sale for immovable property?
What is a requirement for the validity of a contract of sale for immovable property?
- The price must be fully paid upfront.
- It must be signed by two witnesses.
- The authority of the agent must be in writing. (correct)
- It must be executed in public documents.
Which of the following describes an absolute sale?
Which of the following describes an absolute sale?
- The sale is conditional upon the buyer obtaining financing.
- Title passes to the buyer when the purchase price is entirely paid.
- There is no stipulation regarding the payment terms in the sale agreement. (correct)
- Title remains with the seller until the buyer fulfills all obligations.
What distinguishes an absolute sale from other types of sales?
What distinguishes an absolute sale from other types of sales?
What is true about a contract of sale for immovable property that is not notarized?
What is true about a contract of sale for immovable property that is not notarized?
What characterizes an absolute sale?
What characterizes an absolute sale?
In a conditional sale, under what circumstance does ownership transfer?
In a conditional sale, under what circumstance does ownership transfer?
What is required for the perfection of a contract of sale?
What is required for the perfection of a contract of sale?
What does constructive delivery imply in a contract of sale?
What does constructive delivery imply in a contract of sale?
What prevents the obligation to sell from arising in a conditional sale?
What prevents the obligation to sell from arising in a conditional sale?
Flashcards
Absolute Sale
Absolute Sale
A sale where ownership is transferred immediately, even if payment is in installments. No conditions are attached to the transfer.
Conditional Sale
Conditional Sale
A sale where transfer of ownership depends on the fulfillment of a condition, usually full payment. Ownership doesn't pass until the condition is met.
Delivery in Sales
Delivery in Sales
The act of giving possession of a thing sold to the buyer. It can be done physically or by documenting it in a way recognized by law.
Perfection of Contract of Sale
Perfection of Contract of Sale
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Transfer of Ownership in Sales
Transfer of Ownership in Sales
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Written Authorization for Agents in Immovable Property Sale
Written Authorization for Agents in Immovable Property Sale
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Notarization Not Required for Land Conveyance
Notarization Not Required for Land Conveyance
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Written Authorization for Agent to Sell Immovable Property
Written Authorization for Agent to Sell Immovable Property
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Study Notes
Law on Sales
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Sale is a contract perfected by mere consent
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Parties involved are the vendor (seller) and vendee (buyer)
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Vendor's obligation: deliver and transfer ownership
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Vendee's obligation: pay the price
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Contract of sale is consensual
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Essential elements:
- Consent (meeting of the minds): agreement to transfer ownership in exchange for the price
- Determinate subject matter (Object): clearly defined item being sold
- Price certain in money or its equivalent (Consideration): agreed-upon price
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Sale can be absolute or conditional
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Sales contract can be in writing or orally
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Sale of real property (land, building) and movable property above 500 pesos must be in writing to be enforceable
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Sale of immovable property through an agent requires written authorization. Otherwise, the sale is void.
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Ownership transfers upon actual or constructive delivery
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Absolute sale: ownership transfers to the vendee upon delivery of the property, regardless of payment
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Conditional sale: ownership remains with the vendor until full payment of the purchase price
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Two Kinds of Sale
- Absolute sale: title transfers upon delivery, no conditions on payment date
- Conditional sale: ownership remains with vendor until full payment, title transfer condition
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Ownership transfer in sales (Article 1477): ownership of the item sold is transferred when the item is delivered
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Sales made by those not possessing ownership:
- Seller without ownership has no better title
- Valid sale if based on owner's consent or authority
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Sale under statutory power or court order: a seller without ownership can transfer ownership when ordered by a court
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Sale in a merchant's store, fair, or market: sale valid
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Remedies under the Recto Law (applicable to personal property):
- Vendor (seller) may seek payment
- Cancel if multiple installments are missed (seller can cancel the sale)
- Foreclose a chattel mortgage (if one was constituted)
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Remedies are alternative, not cumulative.
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The Recto Law protects installment buyers of real estate
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Realty Installment Buyer Act (Maceda Law): buyer's rights when paying installments:
- Buyer with 2 years of payments
- Grace period for missed payments (one month grace period per year of payment)
- Right to pay full amount and avoid cancellation if missed payments
- Right to surrender property or payments; seller must refund; 50% of payments if less than two years
- If the buyer is in default after two years of payments the seller can cancel
- If less than 2 years in installments:
- 60 days grace period
- Buyer with 2 years of payments
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Buyers can sell or assign their rights prior to cancellation or foreclosures
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Vendor obligations: transfer ownership, deliver the item, warrant the item, take care of the item, pay costs of execution and registration unless otherwise stated
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