NCC 1819 Edited

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CONVEYANCE OF REAL PROPERTY (ART.

1819)
Conveyance in whose Can the partnership Exception/s to Recovery, if
Title in whose name Who conveys Effect of conveyance
name recover the property? any

(1) Partner’s act binds the


partnership under the
p r o v i s i o n s o f t h e fi r s t
paragraph of article 1818

(2) Such property has been


Convey TITLE to the
(1) Partnership A partner Partnership YES conveyed by the grantee or
property
a person claiming through
such grantee to a holder for
value without knowledge
that the partner, in making
the conveyance, has
exceeded his authority

Pass EQUITABLE
INTEREST of the
partnership
(PROVIDED the act is one
(1) Partnership A partner Own name - -
WITHIN THE AUTHORITY
of the partner under the
provisions of the first
paragraph of article 1818)

(1) One or
YES (PROVIDED, the
(2) more but NOT all the
partners’ act does NOT The purchaser or his
partners; Partners in whose name
- TITLE BIND the partnership under assignee, is a holder for
AND record does not the title stands
the provisions of the first value, without knowledge
disclose the right of the
paragraph of article 1818
partnership

EQUITABLE INTEREST
(1) One or
(PROVIDED, the act is one
(2) more or
(1) Partnership WITHIN THE AUTHORITY
(3) all the partners, or A partner - -
(2) His own name of the partner under the
(4) third person in trust
provisions of the first
for the partnership
paragraph of article 1818)

Passes ALL THEIR


All partners All partners All partners - -
RIGHTS in such property
Notes:
• “ – ” means the provision is silent.
• “Conveyance” includes to mortgage (Santiago Syjuco, Inc. vs. Castro [1989]). It will be noticed that under paragraphs 1, 3, and 5 of Article 1819, what is conveyed is title or
ownership, while under paragraphs 2 and 4, what is conveyed is merely the equitable interest.
ART. 1818. (first paragraph) Every partner is an agent of the partnership for the purpose of its business, and the act of every partner, including the execution in the partnership name
of any instrument, for apparently carrying on in the usual way the business of the partnership of which he is a member binds the partnership, unless the partner so acting has in fact
no authority to act for the partnership in the particular matter, and the person with whom he is dealing has knowledge of the fact that he has no such authority.

ART. 1819. Where title to real property is in the partnership name, any partner may convey title to such property by a conveyance executed in the partnership name; but the
partnership may recover such property unless the partner’s act binds the partnership under the provisions of the first paragraph of article 1818, or unless such property has been
conveyed by the grantee or a person claiming through such grantee to a holder for value without knowledge that the partner, in making the conveyance, has exceeded his authority.

Where title to real property is in the name of the partnership, a conveyance executed by a partner, in his own name, passes the equitable interest of the partnership, provided the act
is one within the authority of the partner under the provisions of the first paragraph of article 1818.

Where title to real property is in the name of one or more but not all the partners, and the record does not disclose the right of the partnership, the partners in whose name the title
stands may convey title to such property, but the partnership may recover such property if the partners’ act does not bind the partnership under the provisions of the first paragraph
of article 1818, unless the purchaser or his assignee, is a holder for value, without knowledge.

Where the title to real property is in the name of one or more or all the partners, or in a third person in trust for the partnership, a conveyance executed by a partner in the
partnership name, or in his own name, passes the equitable interest of the partnership, provided the act is one within the authority of the partner under the provisions of the first
paragraph of article 1818.

Where the title to real property is in the names of all the partners a conveyance executed by all the partners passes all their rights in such property.

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