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 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$