SANTOS VS.

CA

GR. NO. 120820

FACTS:

Santos spouses owned a house and lot in Better Living Subdivision, Paranaque which was
mortgage in Rural Bank of Salinas Inc. for a loan of P150k. The spouses offer to sell the property to
Carmen Caseda for P350K of P54k as downpayment. Parties agreed with condition that Caseda will
pay the balance of the mortgage, the real state taxes, and the electric water bills.

Casedas complied with the conditions but when Santoses seeing that Casedas lack the means
to pay the remaining installment and amortization of loan, they repossessed the house and lot and
so collected rentals. Casedas offered to pay remaining balance but was not push through because
Santoses wanted a higher price. Hence, Casedas praying Santoses to execute final deed of
conveyance over the property.

ISSUE:

Whether there was a perfected contract of sale.

HELD:

No, in the absence of the transfer of ownership of the property when it was not executed by
the vendor in exchange of the price paid, a contract of sale was not perfected as expressly provided
under Article 1458. Transfer of ownership is essential element in the contract of sale, in its absence
what transpired was “contract to sell” where in Ownership is reserved by the vendor until full
payment of the purchased price be made. When the petitioner repossessed the disputed property
for failure of private respondent to pay in full the purchased price they were merely enforcing the
contract not rescinding it.

The SC granted the petition.