Abuan v. Garcia
REITERATIONFacts
The Antecedents: Laureano Abuan acquired a homestead, which after his death passed to his legal heirs, the plaintiffs. The Original Certificate of Title was cancelled and a Transfer Certificate of Title was issued in the plaintiffs' names. On August 7, 1953, the plaintiffs sold the land to the defendants via a Deed of Absolute Sale, and a new Transfer Certificate of Title was issued to the defendants. Procedural History: The plaintiffs initially filed an action alleging fraud and lack of consideration in the execution of the Deed of Absolute Sale. This case was settled amicably through an "Agreement" dated February 28, 1955, wherein defendants paid P500.00 as partial payment and promised to pay the balance of P1,500.00 by April 30, 1955, with a thirty-day grace period. The Agreement stipulated that it would supersede all previous agreements. Plaintiffs filed the present action for legal redemption on March 4, 1960, claiming full payment was made only in May 1955. Defendants moved to dismiss, arguing the five-year redemption period had expired. The trial court dismissed the complaint, and the Court of Appeals certified the case to the Supreme Court due to the purely legal issue involved. The Appeal: The plaintiffs appealed the dismissal, contending that the five-year redemption period should be counted from the date of full payment of the purchase price (May 1955), not from the execution of the Deed of Absolute Sale (August 7, 1953) or the Agreement (February 28, 1955). The core issue before the Supreme Court was the determination of the starting point of the five-year redemption period.
Issue(s)
Whether the five-year period for legal redemption under Section 119 of the Public Land Law commences from the date of the execution of the Deed of Absolute Sale, the date of the subsequent Agreement, or the date of full payment of the purchase price.
Ruling
The Supreme Court affirmed the order of the lower court dismissing the complaint. The five-year period for legal redemption was held to have commenced from the date of the execution of the Deed of Absolute Sale.
Ratio Decidendi
On Issue 1: The Court held that the five-year period for legal redemption under Section 119 of the Public Land Law begins to run from the "date of conveyance." Conveyance is defined as the transfer of ownership, which occurs upon the delivery of the property. According to Article 1477 of the New Civil Code, ownership is transferred upon actual or constructive delivery. Article 1498 further clarifies that when a sale is made through a public instrument, its execution is equivalent to the delivery of the thing sold, unless the contrary appears. In this case, the Deed of Absolute Sale was executed on August 7, 1953, which constituted a transfer of ownership and delivery of the land. The subsequent Agreement dated February 28, 1955, while superseding previous agreements regarding payment terms, did not operate to revest ownership in the plaintiffs. Therefore, the five-year period commenced on August 7, 1953. Even if the Agreement of February 28, 1955, were considered the operative date for transfer of ownership, the action filed in March 1960 would still be beyond the five-year period. The fact that full payment was made in May 1955 does not alter the commencement of the redemption period, as payment is not a condition precedent to the transfer of ownership in the absence of an express stipulation to the contrary; ownership passes by delivery.
Main Doctrine
The five-year period for legal redemption under Section 119 of the Public Land Law begins to run from the date of conveyance, which is understood as the transfer of ownership. In cases where the sale is executed through a public instrument, the execution of such instrument is considered equivalent to the delivery of the property, thereby vesting ownership in the vendee and commencing the redemption period, regardless of the actual date of full payment of the purchase price, unless there is a clear stipulation to the contrary.