PROPERTY RELATIONS BETWEEN HUSBAND AND WIFE

1. GENERAL RULE: Property relations shall be governed by Philippine laws, regardless of the place
of the celebration of the marriage or the parties’ residence, exceptions:
1. If both spouses are aliens even if married in the Philippines
2. As to extrinsic validity of contracts:
• Not situated and executed in the Philippines
• Situated in the foreign country but executed in the Philippines
• Contrary stipulation.

2. Rule: Both husband and wife can engage in any lawful enterprise or profession without the consent
of the other. Exception: the other spouse may object only on valid, serious and moral grounds.

3. RIGHTS AND OBLIGATION BETWEEN HUSBAND AND WIFE:

1. Live together
2. Observe mutual love, respect and fidelity
3. Render mutual help and support
4. Fix the family domicile
5. Joint responsibility for the support of the family
6. Joint management of the household

4. THE PROPERTY RELATIONS BETWEEN HUSBAND AND WIFE SHALL BE GOVERNED BY:
1. Marriage settlements or ante-nuptial agreements executed before the marriage celebration
2. The provisions of the law as amended by the Family Code
3. The local customs and
4. In the absence of local customs, rules on co-ownership will apply.

5. MARRIAGE SETTLEMENT – a contract entered into by persons about to be married for the
purpose of fixing the matrimonial property regime that should govern during the existence of their
marriage.

6. CONDITIONS OF MARRIAGE SETTLEMENT

1. Made before celebration of marriage, except in case of judicial separation of property during
the marriage
2. In writing
3. Signed by the parties
4. Will not prejudice 3rd persons unless registered in the civil registry
5. Shall fix terms and conditions of their property relations
6. Signature of parents is required if couple is between 15-21 years of age or by the guardian
if any of the couple is civil interdictees and disabled

7. FUTURE SPOUSES MAY AGREE THEIR MARRIAGE SETTLEMENT, EITHER :

1. THE REGIME OF ABSOLUTE COMMUNITY OR
2. THE CONJUGAL PARTNERSHIP OF GAINS OR
3. COMPLETE SEPARATION OF PROPERTY OR
4. ANY OTHER REGIME.

8. Spouses who were married after the effectively of the Family Code without any pre-nuptial
agreement or when the agreed regime is void shall be governed by the absolute community of
 PROPERTY RELATIONS BETWEEN HUSBAND AND WIFE

property which shall commence at the precise moment on the marriage celebration. (Note: The
Family Code took effect on Augusts 3, 1988).

9. Rule: Community property shall consist of all property owned by the spouses at the time of
the marriage or acquired thereafter, except those:
1. Property acquired before marriage by either spouse who has legitimate descendants by a
former marriage
2. Property for personal and exclusive use except jewelries
3. Property acquired during the marriage by gratuitous title except when the donor,
testator or grantor expressly provides otherwise.

10. Property acquired during the marriage is presumed to belong to the community of the spouses
unless proven not.

11. PROPERTIES CONSIDERED EXCLUSIVE PROPERTIES OF EACH SPOUSE

1. BY DIRECT ACQUISITION
• Those brought to the marriage as his/her own
• Those each spouse has acquired during the marriage by gratuitous title
2. BY SUBSTITUTION
• Those acquired by right or redemption, barter or exchange with property
belonging to only one of the spouses and
• Those purchased with the exclusive money/funds or property of the husband or
wife

12. CAPITAL PROPERTY – refers to any exclusive property brought by the husband to the marriage
1. As his own or
2. He acquired during the marriage by lucrative title or
3. Acquired by right of redemption, barter or exchange with other property belonging exclusive
to him or
4. Purchased from his exclusive money/funds or property

13. PARAPHERNAL PROPERTY – refers to any exclusive property brought by the wife to the
marriage
1. As her own or
2. She acquires during the marriage by lucrative title or
3. Acquired by right of redemption, barter or exchange with other property belonging
exclusively to her or
4. Purchased from her exclusive money/funds or property

14. Donation by reason of marriage or donation propter nuptials – those donations made before
the marriage celebration thereof and in favor of one or both of the future spouses.

15. Distinction between donation by reason of marriage and ordinary donation:

Nature Donation by reason of marriage Ordinary donation

a. As to acceptance Acceptance is not necessary Acceptance is necessary

 PROPERTY RELATIONS BETWEEN HUSBAND AND WIFE

b. As to Extent Present and future properties maybe Only present properties

donated maybe donated

c. As to Revocation Grounds of revocation are found in the Grounds of revocation are

family code found in the Civil Code

16. REQUIREMENTS FOR DONATION PROPTER NUPTIAS TO BE VALID:

1. Made before the celebration of the marriage
2. Made in consideration of the marriage and
3. Made in favor of one or both of the future spouses.

17. Donations propter nuptias on property subject to encumbrances shall be valid. In case of
foreclosure of the encumbrance and the property was sold for less than the total amount of the
obligation secured, the done shall not be liable for the deficiency. If sold more than the total amount
of the obligation, the done shall be entitled to the excess.

18. RULE: DONATION BETWEEN SPOUSES DURING MARRIAGE SHALL BE VOID EITHER
DIRECTLY OR INDIRECTLY EXCEPT ON:
1. Moderate gifts on occasion of family rejoicing
2. Donation mortis causa.

19. Neither spouse may donate any community property without the consent of the other except in
making moderate donations:
1. For charity or
2. On family rejoicing occasions or
3. Family distress

20. Rationale why donation between spouses during marriage shall be void:
1. To protect unsecured creditors from being defrauded
2. To prevent indirect modification of the marriage settlement and
3. To prevent stronger spouse from imposing upon the weaker one the transfer of the latter’s
property to the former.

21. Husband and Wife can sell property to each other when:
1. A separation of property was agreed upon in the prenuptial agreement
2. There has been a judicial separation of property and
3. There has been a legal separation except when spouses have been separated-in-fact for more
than 10 years .

22. Either spouse may dispose by Will his/her interest in the community property.

23. Clara is married to Claro, the information of her marital status and the name of her husband was
reflected in the Absolute Deed of Sale as a requirement under PD 1529.

24. Kirk and Sha got married last October 20, 1988 with a prenuptial agreement of conjugal
partnership of gains but after several years obtained a judicial separation of property from the
 PROPERTY RELATIONS BETWEEN HUSBAND AND WIFE

Regional Trial Court. The property relation governing between Kirk and Sha is complete separation
of property.

25. In conjugal partnership, a house intended for family use acquired by the use of exclusive funds
remains an exclusive property. In case of sale thereof, consent of all beneficiaries is required even
though acquired with the exclusive funds.

26. SEPARATION-IN-FACT OR SEPARATION-DE-FACTO – the cessation of the cohabitation or

common life of the husband and wife under the same roof but they are still providing their mutual
duty of support and maintenance for the children.
27. The separation-in-fact between husband and wife shall not affect the regime of absolute
community or conjugal partnership, if without judicial or court’s approval.

28. In the sale or disposition of conjugal property, the wife’s consent must be secured. If not secured,
the wife may question the sale or disposition from the date of sale within five (5) years.

29. Rules on properties bought on installment paid partly from exclusive funds of the spouses and
from conjugal funds if ownership was vested:
1. BEFORE THE MARRIAGE – it shall belong to the buyer spouse
2. AFTER THE MARRIAGE – it shall belong to the conjugal partnership.

30. Wife’s consent to the husband’s disposition of conjugal property does not always have to be
explicit or set forth in any particular document as long as it is shown by her acts of consent was
indeed given.

31. Sale of conjugal property requires the consent of both spouses; otherwise, the sale shall be void
including the portion of the conjugal property pertaining to the husband/wife who contracted the
sale.

32. Payment of personal debts contracted by either spouse before or during the marriage shall not
be charged to the conjugal partnership except if it has redound to the benefit of the family.

33. Any alienation or encumbrance is void without the written consent of the other spouse; however,
it shall be interpreted as a continuing offer on the part of the consenting spouse and the 3rd person
until acceptance by the other spouse or authorization by the court before the offer is withdrawn by
either or both offeror.

34. CONJUGAL PARTNERSHIP OF GAINS – that formed by husband and wife where they place in a
common fund the fruits of their separate property and the income form their work or industry, the
same to be divided between them equally upon the dissolution of the marriage or the partnership.

35. PROPERTIES UNDER CONJUGAL PARTNERSHIP

1. Obtained from labor, industry, work or profession
2. 2.Acquired by chance
3. Acquired during the marriage by onerous title with conjugal funds
4. Acquired through occupation
5. Fruits of the conjugal property
6. Share of either spouse in hidden treasure
 PROPERTY RELATIONS BETWEEN HUSBAND AND WIFE

7. Net fruits of their exclusive property

36. Rule: Administration of the community property shall belong to both spouses jointly, except:
1. In case of disagreement, husband’s decision shall prevail subject to the recourse to the court
by the wife for a proper remedy within 5 years from date of contract
2. In case one spouse is incapacitated or unable to participate in the administration of the
common properties, the other spouse may assume sole powers of administration which does
not include disposition and encumbrance.

37. Dowry system may govern the property relations between spouses provided that the legal
requirements are complied with.
1023. RULES ON GAME OF CHANCE
1. LOSS – shall be borne by the lose-spouse sand shall not be charged to the community
property
2. WINNINGS – shall form part of the community property

38. THE ABSOLUTE COMMUNITY AND CONJUGAL PARTNERSHIP terminates or can be dissolved:
1. Upon the death of either spouse
2. When there is a decree of legal separation
3. When the marriage is annulled or declared void or
4. Judicial separation of properties during the marriage.

39. THE PHILIPPINE CONSTITUTION (PRESENTLY THE 1987 CONSTITUTION) – is the foremost
or main law governing the right to own real estate in the Philippine jurisdiction.

40. IN CO-OWNERSHIP, a co-owner can dispose his/her share without the consent of his/her co-
owner.

41. CORPORATION cannot acquire agricultural lands of public domain by patents.

42. The title to an inherited property may be transferred to the sole heir upon payment of the estate
tax and the execution, publication and registration of an Affidavit of Self-Adjudication.

43. PROPERTY ESCHEATED to the government is considered as public dominion.

44. ESCHEAT – the reversion of private property to the State due to the intestate death of the owner
who is not survived by any legal heir or there is no qualified heirs are surviving. It is also the
automatic conveyance of real property to the State upon the owner’s death due to the essence of will,
heirs or failure to pay taxes.

45. JUST COMPENSATION – refers

1. The money paid by the State when a public agency takes private property and converts it for
public use
2. To a fair and full equivalent for the loss sustained which is the measure of the indemnity not
whatever gain would accrue to the expropriating entity (JM Tuason & Co,Inc. vs. land Tenure
Administration, 31 SCRA 431, 1976)
3. To the equivalent for the value of the property at the time of its taking
4. The full and fair equivalent of the property sought to be expropriated
5. The sum of a money which a person, desirous but not compelled to buy and an owner is
willing but not compelled to sell, will agree upon as to the price to be given and receive for it
 PROPERTY RELATIONS BETWEEN HUSBAND AND WIFE

(B.H Berkenkotter and Company vs CA 216 SCRA 1992; Manila Railroad Co. vs Velasquez, 32
Phi 286; Association of Small Landowners in the Phils., Inc. vs Secretary of Agrarian Reform,
175 SCRA 378.

46. Real Property held by the owner and/or developer of buy and sells business or used in connection
with trade, business or source of income and is also considered inventory or stock in trade is referred
to as Ordinary Assets.

47. FAMILY CODE OF THE PHILIPPINES – the law that governs the property relations of couples
who plans to get married at present times.

48. REGALIAN DOCTRINE – means all lands of public domain belongs to the State.
49. RES ALICUJUS – refers to property/things owned by a particular/specific person or group of
persons.

50. RES ALIENAE – refers to property/things belonging to another.

51. Res Communes – refers to property/things owned by nobody subject to use of everybody.

52. INSTANCES WHERE ESCROW IN REAL ESTATE IS PROPER – when

1. Title to the property has certain annotations which the seller assume cancellation
2. Seller is given time to vacate the property and escrow is provided to ensure delivery within
the stipulated period and
3. The property is with informal settlers (squatters) and Seller assumes responsibility to eject
them.

53. Future marriage which do not intend to enter a prenuptial agreement shall be governed by the
Family Code of the Philippines and their property relations shall be absolute community of
property.

54. Basically, two types of limitations on the right of ownership over land area: government or legal
and contractual.

55. Andrew, a foreigner married Juana, a Filipino acquired a house and lot in cash and registered it
at the Register of Deeds who acquired Andrew to execute an affidavit of waiver of his rights over the
property, the waiver is considered void.

56. In a sale of land where the price stated is in per sqm but the actual area is smaller than what was
stated in the contract of sale, the buyer has the right to rescind the contract, if the lacking area is not
less than 10% as provided in the contract.

57. Mrs. Mara Clara, a Mexican housewife is contemplating of entering into a lease agreement with a
group of Filipino landowners for real estate properties in the Philippines. The allowable period of
such lease shall be an initial period of up to 50 years, renewable for another 25 years.

58. John and Mary, of legal ages cohabitated (live-in) as husband and live, their property relations
shall be co-ownership.
 PROPERTY RELATIONS BETWEEN HUSBAND AND WIFE

59. Ms. Angie will get married soon and will enter into a prenuptial agreement that provides on
complete separation of property regime. The property relations after her marriage would be
separation of property.

60. RECLAMATION – refers to a mode of acquiring title that needs government approval in filling
submerged.
61. When there is no stipulation of the period which the buyer can redeem the property in a Pacto de
retro contract, the vendor shall have right to redeem the property within four (4) years.
62. Atty. GUB donated to his daughter-Argie a house and lot as wedding gift before the actual
celebration of the marriage in September 26, 2009, the property will be considered community
property.

63. Argie inherited lands before she got married in September 26, 2009 without any prenuptial
agreement; the property is considered paraphernal property.

64. Table of Legitimes

Survivor Legitime Notes

Legitimate Children 1⁄2 Divided by the number of legitimate

children whether they survive
alone or with concurring
compulsory heirs

1 Legitimate Child 1⁄2

Surviving Spouse 1⁄4

2 or more Legitimate Children 1⁄2

Surviving Spouse
Equal to 1
legitimate
child

Legitimate Children 1⁄2

Illegitimate Children 1⁄2 of 1
legitimate
child

Legitimate Children 1⁄2 All the concurring Children get from

Surviving Spouse 1⁄4 the half tree
Illegitimate Children 1⁄2 of 1 portion, the share of the Surviving
Legitimate Spouse having
Child preference over the illegitimate
Children whose share
may suffer reduction pro-rata
because there is no
preference among themselves
 PROPERTY RELATIONS BETWEEN HUSBAND AND WIFE

Legitimate Parents-Ascendants 1⁄2 Whether they survive alone or with

concurring Children

Legitimate Parents-Ascendants 1⁄2 Illegitimate Children succeed in the

Illegitimate Children 1⁄4 1⁄4 in equal shares

Legitimate Parents-Ascendants 1⁄2

Surviving Spouse 1⁄4

Legitimate Parents-Ascendants 1⁄2

Surviving Spouse 1/8
Illegitimate Children 1⁄4

Illegitimate Children 1⁄2 Divided equally among the

Illegitimate Children

Surviving Spouse 1/3

Illegitimate Children 1/3

Surviving Spouse 1⁄2 1/3 if marriage is in article mortis

and deceased
spouse dies within 3 months after
the marriage

Illegitimate Parents 1⁄2

Table of Intestate Shares

Survivor Intestate Share

Legitimate Children 1⁄2

Surviving Spouse 1⁄2

2 or more Legitimate Children Consider Surviving Spouse as 1

Surviving Spouse Legitimate Child, then
divide the estate by total number

Legitimate Parents-Ascendants 1⁄2

Surviving Spouse 1⁄2

Legitimate Parents-Ascendants 1⁄2

Surviving Spouse 1⁄4
Illegitimate Children 1⁄4
 PROPERTY RELATIONS BETWEEN HUSBAND AND WIFE

Illegitimate Children 1⁄2

Surviving Spouse 1⁄2

Surviving Spouse 1⁄2

Brothers and Sisters 1⁄2

65. Per Administrative Order No. 50-99 in matters of expropriation proceeding, if there is conflict
as to payment of just compensation the concerned government agency expropriation a private
property is required to initially pay an amount equivalent to fifteen percent (15%) of the amount
offered to the owner and to deposit the amount in court.

66. Republic Act No. 8974 (Expropriation Law) –

A. Approved on November 7, 2000
B. Private property shall not be take for public use without just compensation (Art III, Sec. 9,
1987 Constitution)
C. The State shall ensure that owners of real property acquired for national government
infrastructure projects are promptly paid just compensation (Sec. 1, RA#8974)
D. Provides guidelines for payment or just compensation as follows:
1. Implementing agency to immediately pay the property owner the amount equivalent to the
sum of (a) 100% of the Value of the property based on the current relevant zonal value and
(b) value of the improvements
2. If there is no zonal value, BIR within 60 days from the date of expropriation case to come up
with zonal value of the subject
3. In case of project with utmost urgency and importance and there is no existing valuation of
the area concerned, the implementing agency shall immediately pat the property owner its
proffered value or offered Value/FMV taking into consideration the following (Sec. 5, RA
#8974)
❖ Classification and use for which the property is suited (legal and highest use)
❖ Developmental costs for improving the land
❖ Value declared by the owner at the assessor’s office
❖ Current selling price of similar lands in the vicinity
❖ Reasonable disturbance compensation for the removal and/or demolition of certain
improvement on the land and for the value of improvements thereon
❖ Size, shape or location, tax declaration and zone valuation of the land
❖ Price of the land as manifested in the ocular findings, oral as well as documentary
evidence presented and
❖ Such facts and events as to enable the effected property owner(s) to have sufficient funds
to acquire similarity situated lands of approximate area as those required from the
government and thereby rehabilitates themselves as early as possible

67. JURISPRUDENCE ON EXPROPRIATION CASES

1. Just compensation means the FMV of the property being taken by the government plus (+)
consequential damage less (-) consequential benefits, if any (JM Tuazon and Co., Inc. vs Land
Tenure Administration 11, SCRA 431, 1976)
2. To a fair and full equivalent for the loss sustained which is the measure of the indemnity not
whatever gain would accrue to the expropriating entity (JM Tuazon and Co., Inc. vs Land
Tenure Administration 11, SCRA 431, 1976)
 PROPERTY RELATIONS BETWEEN HUSBAND AND WIFE

3. The sum of money which is a person, desirous but not compelled to buy and an owner is
willing but not compelled to sell, will agree upon as to the price to be given and received for
it (B.H. Berkenkotter and Company vs CA 216 SCRA 1992; Manila Railroad Co. vs Velasquez,
32 Phi 286; Association of Small Landowners in the Phils., Inc. vs Secretary of Agrarian
Reform, 175 SCRA 378)
4. The measure of just compensation is not the taker’s gain but the owner’s loss. The
compensation to be just, must be fair not only to the owners but also the taker. Even as
undervaluation would over valuation unduly favor him to the prejudice of the government.
(Province of Tayabas vs. Perez, 66 Phil. 467; Municipality of Daet vs CA 93, SCRA 506;
Manotok vs NHA 150 SCRA 89).
5. In determining the FMV, a bonafide sale made in the ordinary course of business of properties
of the same character in the immediate vicinity made sufficiently near in point of time of the
expropriation to exclude general increase/decrease in the value of properties due to changed
commercial conditions (Manila Railroad Co. vs Fabie, 17 Phil. 206,208).
6. Much less can the assessed value of the property be used as the basis for pegging the just
compensation. It is a matter of judicial notice and public knowledge that the assessed value
(AV) is lower than the FMV (Alano, 36 Phil 506).
7. The size, shape and location of the land should be considered (Berkenkotter, 216 SCRA 587).
Thus, even if a parcel of land is agricultural, if there are several commercial establishments
nearby, it should not merely be appraised as agricultural (Republic vs CA 154 SCRA 428).
8. The valuation made by the owner of the property sought to be expropriated should set the
ceiling of just compensation to be accredited to him, because it is an admission against
interest (Republic vs Narciso GR#L-6594).
9. Just compensation is not only correct determination of the amount to be paid to the owner of
the and expropriated but also prompt payment thereof (Municipality of Makati vs CA, 190
SCRA 206, 1990).
10. Consequential damages refer to damages to or destruction of property not actually taken and
they arise when the property actually taken or entered but an injury to its occurs as the result
of an act lawfully done by another. Thus, even if only a portion of a parcel of land was taken,
if the remainder is worthless to the owner because of the smallness of its size or the
irregularity of its shape, the owner should be paid for the entire property (Tenorio vs Manila
Railroad Co., 22 Phil 411).
11. Various factors can come into play in the valuation of specific property singled out for
expropriation. The values given by Provincial Assessors are usually uniform for very wide
areas covering barrios or even as entire town with the exception of the Población. Individual
differences are never taken into account. The value of the land was based on such generalities
as its possible cultivation for rice, com coconuts or other crops. Very often land described
“cogonal” has been cultivated for generations. Buildings are described in terms of only two
or three classes of building materials and estimates of areas are more often inaccurate than
correct. Tax values can serve as guides but cannot be absolute for just compensation (EPZA
vs Dulay, G.R.#59503, April 29, 1987)

FUNDAMENTALS ON CONTRACTS, SALES, MORTGAGES, LEASES, PROPERTY OWNERSHIP AND

FAMILY CODE.

68. CONTRACT – is a meeting of minds between two persons whereby one binds himself with respect
to the other to give something or render some service return.
 PROPERTY RELATIONS BETWEEN HUSBAND AND WIFE

Contract of Sale Contract of Sell

a. failure to pay is a a. failure to pay is a

resolutory condition which positive suspensive
puts an end to the condition which does not
transaction end the transaction

b. after delivery, b. Delivery does not affect

ownership is lost unless it loss of ownership
is rescinded

c. title to the property c. Ownership of the

passes to the buyer after property is retained by the
compliance of his/her Seller until compliance of
obligation the Buyer on the condition

69. Elements of a valid contract (Key: COC)

1. Consent
2. Object and
3. Cause or Consideration).
70. REFORMATION OF INSTRUMENT – means that there having a meeting of the minds of the
parties to a contract; however, their true intention thereof was not expressed in the instruments
purporting to embody the agreement by reason of fraud, accident, mistake and inequitable conduct.

71. UNENFORCEABLE CONTRACTS – those contracts which cannot be sued or enforced unless they
are ratified.

72. UNENFORCEABLE CONTRACTS

1. Those entered into in the name of another person by one who has no authority or legal
representation or who has acted beyond his power
2. Those that do not comply with the Statue of Frauds and
3. Those where both parties are incapable of giving consent.

73. For a contract to be valid, it is essential that there is a meeting of minds between the parties
involved in the contract.

74. ESCROW – an agreement where the consideration of a contract is deposited with a 3rd party who
is authorized to release said consideration or payment to the seller after the compliance of certain
conditions.

75. Persons holding properties in fiduciary relation which cannot directly or indirectly acquire by
purchase the properties even at public/judicial auction: (Key: AGEA-PO-Justices-Others)
1. AGENTS – as to the property whose administration or sale may have been entrusted to
him/her unless consent of the principal has been given
2. GUARDIAN – as to the property of the person(s) who may be under his/her guardianship
 PROPERTY RELATIONS BETWEEN HUSBAND AND WIFE

3. EXECUTORS AND ADMINISTRATORS – as to the property of the state under administration

4. PUBLIC OFFICERS AND EMPLOYEES – as to the properties of the government, its political
subdivision or any GOCC or institution which administration has been entrusted to them
5. JUSTICES, JUDGES, PROSECUTORS, LAWYERS, CLERKS OF COURTS OFFICERS AND
EMPLOYEES – as to the property and rights in litigation or levied upon on execution before
the court and
6. ANY OTHER PERSONS specially disqualified by law

76. INSTANCES WHEN SPECIAL POWER OF ATTORNEY IS NECESSARY to secure for the Agent to
bind the Principal
1. To make payments which are not usually considered as acts OF administration
2. To enter into any contract by which the ownership of an immovable or real property is
transmitted or acquired either gratuitously or for valuable consideration
3. To waive any obligation gratuitously
4. To create and convey real rights over immovable/ real property
5. To effect novation which put an end to obligations already in existence at the time the agency
was constituted
6. To compromise, to submit questions to arbitration, to renounce the right to appeal from a
judgment, to waive objections to the venue of an action or to abandon a prescription already
acquired
7. To obligate the principal as guarantor or surety
8. To make gifts except customary ones for charity or those made to employees in the business
managed by the agent
9. To loan or borrow money unless the latter act is urgent and indispensable for the
preservation of the things which are under administration
10. To lease any real property to another for more than one (1)year
11. To bind the principal to render some service without compensation
12. To bind the principal in partnership contract
13. To accept or repudiate an inheritance
14. To ratify or recognize obligations contracted before the agency and
15. To perform other act of strict dominion.

77. POLICITATION – an unaccepted promise to buy or sell and even if accepted by the other party
it is not binding upon the promisor and maybe withdrawn anytime.

78. RIGHT OF FIRST REFUSAL – an innovative juridical relation and if included in the contract it is
enforceable by specific or definit performance. (Equal Really, Inc. vs. Carmelo, et.al)

79. PACTUM RESERVATI DOMINI – a stipulation where parties in a contract agree that despite
delivery of the thing/property the ownership thereof shall remain with the seller until such time that
the Buyer had fully paid the price.

80. CONTRACT OF SALE – refers

1. A contract whereby one of the contracting parties obligates himself to transfer the ownership
of a property and for the other to pay a price certain in money or its equivalent
2. Title passes to the buyer upon the delivery of the property being sold
3. Toa document which will transfer, conveys and assigns real estate from the owner to the
buyer
 PROPERTY RELATIONS BETWEEN HUSBAND AND WIFE

81. CONTRACT TO SELL –a

1. Is a kind of sale whereby payment of the contract price is made at some future date and that
ownership of the property shall be retained by the owner until full payment is made
2. Contract whereby ownership is reserved in the vendor and is to be passed until full payment
of the price.

82. Oral contract of sale over a parcel of land is valid and binding between the parties but with respect
to innocent third (3) persons it is not binding upon them.

83. ABSOLUTE DEED SALE – refers

1. An agreement to be complied by either the Seller or Buyer without any stipulated conditions
2. A document which transfers, conveys, and assigns a real estate property from the owner to
the buyer.

84. Distinctions between Contract of Sale and Contract to Sell

85. CONDITION SALE – one whereby an agreement contained terms and conditions to be undertaken
by either the parties.
86. A Seller need not be the owner at the time of the perfection of the contract but should be the
owner at the time of delivery because it is only when the object is delivered that the Buyer acquires
ownership.
87. CHARACTERISTICS OF A CONTRACT OF SALE
1. CONSENSUAL – perfected by mere consent without any further act
2. BILATERAL – both parties bound to fulfill obligations towards each other
3. ONEROUS – thing sold is with a consideration
4. COMMUTATIVE – the thing sold is considered the equivalent of the price paid and vice-
versa
5. NOMINATE – a name is given
6. PRINCIPAL – does not depend for its existence/validity upon another contract

88. STATUTE OF FRAUD – a legal provision which requires agreement for the sale of real estate to
be in writing and subscribed by the parties in order to be enforceable.

89. Gross inadequacy of price does not affect a contract of sale except if it may indicate a defect in the
consent or that the parties really intended a donation or some other act or contract.

90. An important element in a contract of sale is that the Seller transfers ownership of the
property/thing to the Buyer.

91. PACTO DE RETRO SALE – refers to the sale wherein the Seller has the right to repurchase the
subject matter or the property being sold. Period when the Vendor a retro can repurchase the
property
1. IN THE ABSENCE OF AN AGREEMENT
i. It should be made within four (4) years from the date of the signing of the contract
2. IF THERE IS AN AGREEMENT
i. The period should not exceed ten (10) years

92. DACION EN PAGO OR DATION IN PAYMENT – refers

 PROPERTY RELATIONS BETWEEN HUSBAND AND WIFE

1. To property alienation or sale to the creditor to satisfy a debt in money or in payment of the
loan
2. The conveyance of real property in payment of a financial obligation
3. To that short of foreclosure, the mortgage agrees to transfer ownership of the mortgage
property to the mortgagor

93. In the sale of a property with right to repurchase or in pacto de retro, the redemption period shall
be
1. Four (4) years from the date of contract in the absence of any agreement
2. Should not exceed ten (10) years if there be an agreement
3. However, the vendor may still exercise the right to repurchase.
4. Within thirty (30) days from final judgment in a civil case that the contract is a true sale
with a right to repurchase

94. Chrisela entered into a pacto de retro sale; however, what was actually entered as a mortgage
using the property she is presently occupying as collateral. Hence, it may be considered as an
equitable mortgage.

95. Rule: Spouses cannot sell property to each other except when there is judicial separation of
property. Either spouse may dispose by will his/her interest in the community property without the
consent of the other spouse.

96.
1. DEED OF SALE WITH MORTGAGE – refers to that sale where portion of purchase price is paid
in cash and the balance is converted into a loan in favor of the Seller which is the object of the
sale or the property is mortgage to secure payment of the loan to the Seller.
2. SALE WITH ASSUMPTION OF MORTGAGE – refers to the sale where portion of the purchase
price is paid in cash and balance is paid by the buyer through an assumption of an existing
mortgage of the subject property.

97. OBLIGATIONS OF THE SELLER/VENDOR

1. To transfer the ownership of the determinate thing
2. To deliver the thing/property
3. To warrant against eviction and hidden defects
4. To take care of the thing/property pending delivery with proper diligence
5. To pay for the expenses for the execution and registration of the deed of sale unless there is
a stipulation to the contrary

98. OBLIGATIONS OF THE BUYER/VENDEE

1. To accept delivery and
2. To pay the price of the thing sold

99. RULES ON DOUBLE SALE OR ORDER OF PREFERENCE IN CASE A PROPERTY IS SOLD TO TWO
OR MORE BUYERS
1. The buyer in good faith who first register the sale at the Registry of Property or Register of
Deeds has the better right to ownership of the property being sold or the Vendee who first
register the sale in good faith
 PROPERTY RELATIONS BETWEEN HUSBAND AND WIFE

2. If the sale is not registered nor there is no inscription, the buyer in good faith who first took
possession has the preferential right or the Vendee who first took possession in good faith, in
case none of the Vendees registered the sale and
3. If there is no registration nor inscription nor possession, the buyer in good faith who can
present the oldest title has the better right or the Vendee who presents the oldest title in good
faith, in the absence or registration and possession by both Vendees.

100. PURCHASER IN GOOD FAITH – one who buys the property of another without notice that some
other person has a right or interest in such property and pays a full and fair price thereof at the time
or purchase or before he/she has notice of the claim or interest of some other person in the property.

101. The Rule of Double Sale giving better right to the buyer in good faith who registered the sale
does not apply to unregistered land.

102. THE RULE OF CAVEAT EMPTOR is applicable to execution sales. The Buyer has to exercise due
diligence. The sheriff does not warrant the title to the property sold by him/her and it is not
incumbent upon the Sheriff to place the buyer in possession of the property being sold.

103. THE STATUTE OF FRAUD is not applicable when by virtue of an contract of sale, the Seller
delivered to the Buyer a parcel of land which was only partially paid because it does not apply to
partial performance.

104. INSTANCES WHEN CONTRACT IS PRESUME TO BE AN EQUITABLE MORTGAGE

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 was executed
4. When the purchaser retains by himself/herself a part of the purchase price
5. When the Vendor binds himself to pay the taxes in the thing/property sold
6. In any other case where it may be fairly concluded that the real intention of the parties is that
the transaction shall secure the payment of a debt of the performance of any other obligation.

105. The right to purchase should be reserved in the same Deed of Sale. If reserved in a separate
instrument, then the document is not a sale with right to repurchase but a mere promise to sell which
is at the discretion of the Vendee a retro.

106. The essence of a sale with right to purchase is that the title and ownership of the property sold
is immediately conferred in the Vendee a retro subject to the resolutory condition of purchaser by
the vendor a retro within a stipulated period and failure to perform the said resolutory condition
confers upon the vendee the absolute title or ownership over the property sold. The execution of a
contract extending a contract of
sale with right to repurchase can be interpreted as indicative of an equitable mortgage.

107. In case of failure to redeem there shall be consolidation of ownership in the Vendee a retro
which failure shall result in the loss of the right to repurchase. Registration of the consolidated
ownership requires a judicial order after the vendor shall have been notified in order to comply the
due process clause.
 PROPERTY RELATIONS BETWEEN HUSBAND AND WIFE

108. Vendor cannot avail the right to repurchase without returning to the Vendee the price of the
sale and in addition the expenses of the contract and any other legitimate payments made by reason
of the sale as well as the necessary and useful expenses made on the property sold.

109. ACCION REDHIBITORIA – an action instituted by the vendee against the vendor to avoid a sale
on account of some vice or defect in the thing/property sold which render it unfit for the use
intended or which will diminish its fitness for use to such extent that had the vendee been
aware of it he/she would not have acquired it.

110. ACCION QUANTIMINORIS – an action to procure the return of a part of the purchase price paid
by the vendee to the vendor by reason of defect of the thing/property sold.

111. Mary married Roy in 1999. On 2011, Mary’s surviving parent died and she inherited a two (2)
hectare lot in Makati. After the settlement of the estate, Mary sold the property without the consent
and over the objection of Roy. The sale is valid over the objection of Roy because the property being
sold is a paraphernal or exclusive property of Mary.

112. Not in all cases that a deed sale titled in the name of “Gil married to Larrie’ has to be signed by
both spouses because there are properties such as: the exclusive property which title was only
acquired during the marriage but the payment thereof was taken from the exclusive funds of either
spouse.
113. REAL ESTATE MORTGAGE – refers
1. To an accessory contract whereby the debtor guarantees the performance of the principal
obligation by subjecting the real property or rights thereto as security in case if non-payment
of the obligation within the agreed period
2. To a contract where a real property is given as collateral to secure the performance or
fulfillment of a principal obligation

114. MORTGAGE is taken from the French words “mort” and “gage”. “Mort” means to “dead” and
“gage” means pledge – which means unproductive pledge or dead pledge.

115. ESSENTIAL CONDITIONS OF REAL ESTATE MORTGAGE

1. It must be constituted to secure the performance of the principal obligation
2. The subject matter of the contract must be immovable property or alienable real rights upon
immovable
3. The mortgage must be absolute owner of the property being mortgage
4. The mortgage should have the free disposal of the mortgaged and in the absence thereof
should be legally authorized for the purpose
5. When the principal obligation becomes due, the property mortgage may be alienated for the
payment of such obligation.

116. Registration in the Registry of Property is not necessary for the validity of the REM contract. It
is necessary for the purpose of binding 3rd persons. Whether the REM is registered or not, it is binding
upon the properties.

117. PACTA NON ALIENADO – a stipulation in a real estate mortgage contact prohibiting the
mortgagor from alienating the mortgage property during the mortgage period.
 PROPERTY RELATIONS BETWEEN HUSBAND AND WIFE

118. DEFEASANCE CLAUSE – is provision in a mortgage contract that ends the mortgage when all
payments are made transferring title to the property back to the mortgagor or terminating the
lender’s interest in the property.

119. ANTICHRESIS –refers to

1. A contract whereby person borrowing money of another hands over his/her property to the
creditor allowing the use and occupation thereof for the interest of the money lent
2. A contract by virtue of which the creditor acquires the right to receive the fruits of an
immovable of his debtor with the obligation to apply them to the payment of the interest if
owing and thereafter to the principal of his credit (Art .2132, New Civil Code)
3. A contract wherein the mortgage receives the fruits of the property with the obligation to
apply them in payment of the interest and the principal obligation
4. A contract where a property is hypothecated to secure an obligation where the creditor is
given the right to possess the property and collect the fruits thereof and to hypothecate
means a property with transfer of possession

120. TYPES OF REAL ESTATE MORTGAGE (REM)

1. BLANKET MORTGAGE – refers A mortgage which covers two or more properties being the
subject thereto
i. To a loan to be secured by numerous or several properties of the property
owner because one property as a collateral is insufficient of inadequate
2. OPEN-ENDED MORTGAGE – a type of mortgage which permits borrowing additional funds
at a later date against the same collateral
3. VOLUNTARY OR CONVENTIONAL MORTGAGE – those agreed to between the parties or
constituted by the will of the property owner in which they are created
4. LEGAL MORTGAGE – those constituted by operation of law or by express provision of the
law
5. EQUITABLE MORTGAGE – refers
i. One in the form of contract of sale but is actually a mortgage
ii. To a contract which lack one or some of the formalities prescribed by law but
show the intention of the parties to charge real estate or real rights as security
for the payment of a debt and contains nothing which is impossible or
contrary to law

121. AUTOMATIC REDEMPTION CLAUSE – is a

1. provision in a blanket mortgage which states that a property which loan value has been fully
paid shall be released from the mortgage
2. provision in a mortgage contract which release the property from the encumbrance when the
obligation is fully paid.

122. PACTUM COMMISSORIUM - refers

1. to the stipulation of a mortgage contract with authorizes the mortgage to appropriate
automatically the mortgaged property as his/her own upon failure of the debtor/mortgagor
to pay the principal obligation
2. to the automatic appropriation of the property or object of the mortgage upon the maturity
of the loan
 PROPERTY RELATIONS BETWEEN HUSBAND AND WIFE

3. to a provision in a mortgage contract which allows the creditor to immediately appropriate

the property mortgaged upon non-payment of the amortizations
4. a void stipulation of a mortgage contract and no legal effect.

123. ABC Bank foreclosed a lot of Gillar Corporation. Gillar Corporation can redeem the lot
within 3 months from the foreclosure sale.

124. MORTGAGE IN POSSESSION – refers to one who has lawfully acquired actual or constructive
possession of the property mortgaged to stand upon his/her rights as mortgagee and not to claim
under another title for the purpose of enforcing his/her security on such property and making the
property’s income help to pay the debts.

125. PENDING FRUITS (FRUITS NOT YET HARVESTED) of the property when the obligation
become due or matured are covered by the contract of real estate mortgage but it does not include
those fruits which are already harvested.

126. UP SET PRICE OR TIPO – a stipulation in a mortgage or real property fixing a minimum price
at which the property shall be sold to become operative in the event of a foreclosure sale at public
auction, which stipulation is considered void because the property should be sold to the highest
bidder.

127. FORECLOSURE PROCEEDING – is

1. one by which the mortgage property shall be sold at public auction and the proceeds of the
sale shall be applied for the satisfaction of the obligation or the debt
2. a procedure or process wherein a property used as collateral for a debt is sold to pay the loan
in case of debtor or borrower’s default

128. An unregistered mortgage is binding only to the mortgagor and mortgagee.

129. DEFICIENCY JUDGMENT – a judgment for the mortgagor to pay the balance of an obligation if
the proceeds of the foreclosure sale are not sufficient to cover the mortgage obligation.

130. KINDS OF FORECLOSURE PROCEEDINGS

1. EXTRA-JUDICIAL FORECLOSURE –
• One whereby the mortgagee as attorney-in-fact of the mortgagor applies for
foreclosure with the Sheriff where the property is located
• The Sheriff makes the required publication of sale and undertakes the sale in
public auction.
• Sheriff issued certificate of sale to the winning bidder and cause the certificate of
sale to be annotated at the back of the certificate of title
2. JUDICIAL FORECLOSURE – one where the mortgage filed complaint with the proper court
which orders the payment of obligations within 90 days or sale the property at a public
auction arises if mortgagor failed to pay and confirms sale at public auction.

131. The right to foreclose a mortgage prescribes in ten (10) years, in a judicial foreclosure of
mortgage; the mortgage has an equity of redemption.
 PROPERTY RELATIONS BETWEEN HUSBAND AND WIFE

132. REDEMPTION OF FORECLOSED PROPERTY – refers to a operation by which the mortgagor

reacquires or buys back the property which has passed under the mortgage or diverts the property
of the lien which the mortgage have been created.

133. RIGHTS OF REDEMPTION – right of the mortgagor to redeem the mortgaged property within
certain period after it was sold for the satisfaction of the debt and to be exercised within one (1) year
from the registration of the sale.

134. EQUITY OF REDEMPTION – right to the mortgagor to redeem the mortgaged property after
death in the performance of the conditions of the mortgage but before the sale of the mortgaged
property or confirmation of the sale.

135. Property which was judicially foreclosed can no longer be redeemed by the owner after the
auction sale has been confirmed by the court except, when the mortgagee is a bank whereby the
redemption can still be made within one (1) year from auction sale.

136. LEGAL REDEMPTION – the right to be subrogated on the same terms and conditions stipulated
in the contract in the place of one who acquires a property or thing by purchase or dation in payment
or by any other transaction whereby ownership is transmitted by onerous title.

137. CONVENTIONAL REDEMPTION takes place when the vendor reserves the right to repurchase
the property/thing sold with the obligation to return the price delivered as well as the necessary and
useful expenses made on the property/thing.

138. DISTINCTION BETWEEN THE REAL ESTATE MORTGAGE AND PACTO DE RETRO SALE
Real Estate Mortgage Pacto De Retro Sale or Sale with right to
Repurchase

An accessory contract A principal and independent contract

There is no transfer of title and possession of There is a conditional transfer of title and
the property possession

Creditor has no right to the fruits of the Vendee a retro is entitled to the fruits even
property during the pendency of the mortgage during the period of redemption

If debtor failed to pay the debt, the creditor As soon as there is a consideration of title in the
cannot appropriate the property mortgaged nor vendee a retro, he/she may dispose it as
dispose it absolute owner
 PROPERTY RELATIONS BETWEEN HUSBAND AND WIFE

If the debtor failed to pay within the time agreed If the vendor a retro does not redeem the
upon the mortgagee does not acquire the property within the time agreed upon, the
property mortgaged vendee a retro irrevocably acquire absolute
ownership thereof

139. In case of involuntary conveyance such as foreclosure sale, title to real estate can be transferred
to another person even without the consent of the registered owner.
140. In extrajudicial foreclosure of mortgage or real estate acquired through homestead, the
redemption period is five (5) years from auction sale.

141. RELATIONSHIP OR SIMILARITY OF REAL ESTATE MORTGAGE AND PLEDGE

1. Both guarantees the performance of a principal obligation
2. Both subjects the property for the fulfillment of the obligation as security
3. In both cases, the creditor cannot appropriate the property to himself/herself
4. The property should be sold and the proceeds shall be applied in payment, if the obligation is not
paid

142. DISTINCTION BETWEEN REAL ESTATE MORTGAGE AND ANTICHRESIS

Real Estate Mortgage Antichresis
Mortgagor retains possession of the Mortgagor/Debtor surrenders possession of the
property including the fruits property including the fruits to the Creditor

Creditor does not receive the fruits Creditor generally receives the fruits

Mortgagor/Debtor pays the property taxes Mortgagee/Creditor is obliged to pay the property
taxes

143. ACCELERATION CLAUSE – a provision included or inserted in the mortgage which will allow
the mortgage to foreclose the collateral property because of non-payment of monthly amortizations
that makes the principal obligation due and demandable.

144. The mortgagor may redeem the property which has been foreclosed extrajudicially within a
period of one (1) year from date of foreclosure sale.

145. CONDITIONS FOR VALID REDEMPTION

1. Redemption should be made within 12 months from the time the registration of the sale
2. Payment of the purchase price plus the legal interest together with the related taxes paid
thereat by the purchaser computed from the date of registration of the sale
3. Written notice of the redemption should be served to the officers who made the same and the
duplicate filed with the proper Register of Deeds Office.

146. LEASE – refers to

1. A contract between the property owner and a tenant setting forth the conditions of the use of
the property subject to the lease
2. An agreement where one of the parties binds himself to give to another the enjoyment or use
of a thing/property for a price and for a certain period
 PROPERTY RELATIONS BETWEEN HUSBAND AND WIFE

3. A consensual, bilateral, onerous and commutative contract by virtue of which one person
binds himself to grant temporarily the use of a thing/property or to render some services to
another who undertakes to pay some rent/price or compensation

147. RA#9653 (RENT CONTROL ACT OF 2009) – refers

1. An act establishing reforms in the regulation of rent of certain residential units which was
approved last July 14, 2009 and took effect on September 30, 2009.
2. Coverage
A. All residential units in the National Capital Region (NCR) and other highly urbanized
cities the total monthly rent for each unit ranges from P1.00 to P10,000 and
B. All residential units in all other areas the total monthly rent for each unit ranges from
P1.00 to P5,000 without prejudice to existing contracts
3. Limitations on Increases in Rent under RA#9653
A. Increase in rentals shall not be imposed on any residential unit for a period of one (1)
year from effectivity of the law (September 30, 2009)
B. After one year from September 30, 2009 until December 31, 2013 rent of any
residential unit shall be increased by more than seven (7%) per annum as long it is
occupied by the same lessee
C. Lessor may set the initial rent for the next lessee when the residential unit become vacant
only
D. Rental increases shall not be more than once a year for boarding houses, dormitories,
rooms and bed spaces offered for rent to students as defined under RA#9653
4. Housing and Urban Development Coordinating Council (HUDCC) is granted with the
authority to:
A. Continue the regulation of rental for certain residential units
B. Determine the period of regulation and its subsequent extensions
C. Determine the residential units covered and
D. Adjust the allowable limit on rental increases per annum taking into consideration among
others:
• NSO census on rental units
• Prevailing rental rates
• The monthly inflation rate on rentals of the immediately preceding year and
• Rental price index
5. Rent shall be paid in advance within the first five (5) days of every current month or the
beginning of the lease agreement unless the contract of lease provides for a later date of
payment
6. The lessor cannot demand more than one (1) month advance rent and more than two
(2) months deposit which shall be kept in a bank under the lessor’s account name during
the entire duration of the lease agreement
7. Any and all interest that shall accrue on the bank deposit shall be returned to the lessee at the
expiration of the lease contract
8. In case the lessee failed to settle rent, electric, telephone, water or such other utility bills or
destroys any house components and accessories of the leased residential unit, the deposits
and interests of the rental deposited in the bank shall be fortified in favor of the lessor in the
amount commensurate to the pecuniary damage done by the lease.

148. RENT – means the amount paid for the use or occupancy of a residential unit whether payments
is made on a monthly or other basis.
 PROPERTY RELATIONS BETWEEN HUSBAND AND WIFE

149. LESSEE – means the person renting a residential unit.

150. OWNER/LESSOR – shall include the owner/agent or administrator of the owner of the
residential unit.
151. SUBLESSOR – refers to the person who leases or rents out a residential unit leased to him by an
owner.
152. SUBLESSEE – means the person who leases or rents out a residential unit from a Sublessor.

153. RESIDENTIAL UNIT – refers to

1. An apartment
2. House and/or land on which another’s dwelling is located and used for residential purposes
3. Building parts or units thereof solely used for
• Dwelling places
• Boarding houses
• Dormitories
• Rooms and
• Bedspaces offered for rent by their owners except:
o Motels
o Motel rooms
o Hotels
o Hotel rooms
• Those used for home industries, retail stores or other business purposes if the owner
thereof and his/her family actually live therein and use it principally for dwelling
purposes

154. For purposes of possessing the leased premises, the immediate members of the family of the
lessee or lessors shall be limited to:
1. His/her spouse
2. Direct descendants or ascendants by consanguinity or affinity

155. ASSIGNMENT OF LEASE OR SUBLEASING of the whole or any portion of the residential unit
including the acceptance of boarders or beds pacers without the written consent of the owner/lessor
is prohibited.

156. LESSEE OF REAL PROPERTY cannot assign the lease to a third person without the lessor’s
written consent unless there is a stipulation in the contract.

157. No lessor or his successor-in-interest shall eject the lessee on the ground that the leased
premises have been sold or mortgaged to a 3rd person whether the lease or mortgage is registered or
not.

158. GROUNDS FOR JUDICIAL EJECTMENT OR TERMINATION OF LEASE AGREEMENT

A. Assignment of lease or subleasing of residential units in whole or in part without the
written consent of the owner/lessor including the acceptance of boarders or beds pacers
B. Expiration of the lease period in the contract
C. Legitimate need of the owner/lessor to repossess the property for his/her own use or
for the use of any immediate member of his/her family as a residential unit; provided,
1. The lease for a definite period has expired
 PROPERTY RELATIONS BETWEEN HUSBAND AND WIFE

2. The lessor has given the lessee the formal notice three (3) months in advance of the
lessor’s intention to repossess the property
3. The owner/lessor shall not lease one (1) year from the time of repossession
D. Lessor’s need to make necessary repairs of the leased premises which is the subject of an
existing order of condemnation by appropriate authorities in order to make the said
premises safe habitable; provided,
1. After the said repair the ejected lessee shall have the first preference to lease the same
premises
2. The new rent shall be reasonably commensurate with the expenses incurred for the
repair of the said residential unit
3. If the residential unit is condemned or completely demolished, the lease of the new
building will no longer be subject to the first preference rule
E. Arrears in rental payments for a total of three (3) months; provided,
1. In case of refusal by the lessor to accept payment of the agreed rent, the lessee may
deposit by way of consignation the amount in
• Court or with the city or municipal treasurer or
• Barangay Chairman or
• In a bank in the name of and with notice to the lessor
• Within one (1) month after the lessor’s refusal to accept payment
2. Lessee shall thereafter deposit the rent within ten (10) days of every current
month
3. Failure to deposit the rent for three (3) months shall constitute a ground for
ejectment
4. Lessor upon authority of the court in case of consignation upon joint affidavit by him
and the lessee to be submitted to the city or municipal treasurer or Barangay
Chairman and to the bank where deposit was made shall be allowed to withdraw
the deposits
F. Ownership of the Lessee with another residential unit which the lessee may use as
residence.
159. PENALTIES FOR VIOLATING THE NEW RENT ACT (RA#9653)
1. Fine of at least P25,000 up to P50,000 or
2. Imprisonment of not less than one (1) month and one (1) day up to six (6) months or
3. Both shall be imposed on any person, natural or juridical, found guilty of violating any
provision of law

160. A SUBDIVISION DEVELOPER which have a rent to own package scheme for its condominium
projects in reference to the unit thereof, the monthly rental increases shall not be subject to the
New Rent Act (RA#9653), thereof has not limit on its rental increases.

161. To have a valid contract of lease there should be meeting of minds between the owner and the
lessee whether there is an execution of written agreement or not.

162. IN CASE OF EJECTMENT, THE LESSOR/OWNER may file a case for unlawful detainer at the
Metropolitan or Municipal Trial Court.

163. If the lessor of a residential house shall enter into a new lease agreement with the lessee; the
lessor/owner is obligated to make sure that this is suitable for the intended purpose of the lease.
 PROPERTY RELATIONS BETWEEN HUSBAND AND WIFE

164. ECONOMIC RENT – is the revenue derived from the use of land including the forces inherent in
the land.

165. LEASE WITH OPTION TO BUY – one whereby the owner leases the property to the lessee-
buyer with the privilege to exercise the right to buy thereof at a specific date at an agreed price and
the agreed rental maybe considered as part of the purchase price when the lessee-buyer exercise the
option.

166. Argie bought the house of PJ a retro. There was an unrecorded lease between PJ and Larrie.
Argie the buyer of the house cannot immediately terminate the lease because the buyer a retro is not
yet the owner while the period to repurchase the house has not yet expired.

167. BY TACIT RENEWAL OF A CONTRACT OF LEASE (TACITA RECONDUCCION) – refers to a

legal principle which implied that a new lease contract was created or established when the lessee
continues to occupy the leased premises for a least fifteen (15) days after the expiration of the lease
with the consent of the lessor and without any notice to vacate from the premises given by either
party.

168. VALUE IN EXCHANGE – refers to the worth of an object relative to other object which can be
compared and for which it can be exchange.

169. The lessee may sublease the premises to a 3rd person without the consent of the lessor, unless
there is an express prohibition in the contract of lease without prejudice to the responsibilities for
the performance of the contract.

170. If the lessee sublease the property to a 3rd person or to a sub-lease, the latter may be held liable
to the lessor for the rent due from the lessee being a subsidiary thereto up to the amount due from
the sub-lessee according to the terms of the sublease.
171. LEASE OF PROPERTY – is one whereby one of the parties binds to give to another the
enjoyment or use property for a specified price/consideration and for a definite or indefinite
time/period but not more than for 99 years.

172. LEASE OF WORK/SERVICE – one of the parties binds himself execute a piece of work or to
render to the other some services for a price certain without the existence of the principal and agent
relationship.

173. ON LEASE TO ALIENS/FOREIGNERS, the period of lease on private lands shall be 25 years
renewable for another 25 years, (PD#471 on fixing the maximum period for the duration of Lease
of Private lands to Aliens)

174. In a sale retro where it is stipulated that the vendor has the right to repurchase the property
“when he has the means”; it means that the vendor has ten (10) years to redeem it.

175. LEASE FEE ESTATE – refers to the right of the owner-lessor to receive the contract rent and the
reversion of the property at the end of the lease contract.

176. RULES OF DURATION OF LEASE IS NOT FIXED

1. URBAN PROPERTY, IF RENT AGREED IS:
 PROPERTY RELATIONS BETWEEN HUSBAND AND WIFE

a. Annual – from year to year

b. Monthly – from month to month
c. Weekly – from week to week
d. Daily – from day to day
e. Court may fix or determine a longer term/period
• For the lease after lessee has occupied the premises for more than a year although
monthly rental was paid and no period for the lease has been set
• After lessee has been in possession for more than 6 months in case of weekly rent
• After the lessee has stayed in place for more than a month in case if daily rent
2. RURAL LAND, it is understood to have been made for the time necessary for the gathering of
the fruits which the whole estate may yield in one year or which it may yield once, although
two (2) or more years may have elapsed for the purpose

177. The law requires the lessor to maintain the lessee in the peaceful and adequate enjoyment of
the lease for the entire duration of the contract and see to it that the enjoyment thereof is not
interrupted or disturbed either by other’s acts or by his/her own.

178. GROUNDS FOR JUDICIAL EJECTMENT OR TERMINATION OF LEASE AGREEMENT OTHER

THAN RESIDENTIAL UNIT
1. Expiration of the lease period
2. Need of the Lessor to make the necessary repairs; provided, the ejected lessee shall have the
right of first refusal to lease the same premises
3. Arrears in rental payment for 3 months or non-payment or rentals
4. Violation of any of the terms and conditions of the lease contract
5. Improper use or misuse of the leased premises/property
6. Legitimate need of the lessor to repossess to leased property for his personal use
7. Subleasing or assignment of the lease without the written consent from the Lessor and
8. Other violations under the law (Article 1673 & Art. 1683-NCC)
179. CONDITIONS FOR JUDICIAL EJECTMENT OF TENANT (BP BIG#25, BP BIG#877 AS
AMENDED BY RA#6643 AND 8437)
1. Need of the lessor for his/her own use for the use of any immediate member of the family
2. Owner/immediate member of the family is not the owner of any available residential unit
3. Period of lease had expired and
4. Lessor has given the lessee notice 3 months in advance of lessor’s intention to repossess the
leased property for his personal use