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    The Facts Are

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    Yanyan Marianne
    - MR RL sold three parcels of land to MS LL for 1.1 million pesos and executed a notarized deed of sale, handing over the keys to the properties. - MS LL paid 415,500 pesos as a partial payment and informed the mortgage lender SLC of the agreement to assume MR RL's outstanding loan. - However, MR RL then sold the same properties to ELVIE, changing the locks and taking back the title from SLC after paying off the loan. - MS LL filed a case against MR RL and ELVIE. MR RL claimed it was a contract to sell, not a sale, since the loan assumption was not completed.

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    The Facts Are

    Uploaded by

    Yanyan Marianne
    191 views2 pages
    - MR RL sold three parcels of land to MS LL for 1.1 million pesos and executed a notarized deed of sale, handing over the keys to the properties. - MS LL paid 415,500 pesos as a partial payment and informed the mortgage lender SLC of the agreement to assume MR RL's outstanding loan. - However, MR RL then sold the same properties to ELVIE, changing the locks and taking back the title from SLC after paying off the loan. - MS LL filed a case against MR RL and ELVIE. MR RL claimed it was a contract to sell, not a sale, since the loan assumption was not completed.

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    - MR RL sold three parcels of land to MS LL for 1.1 million pesos and executed a notarized deed of sale, handing over the keys to the properties. - MS LL paid 415,500 pesos as a partial payment and informed the mortgage lender SLC of the agreement to assume MR RL's outstanding loan. - However, MR RL then sold the same properties to ELVIE, changing the locks and taking back the title from SLC after paying off the loan. - MS LL filed a case against MR RL and ELVIE. MR RL claimed it was a contract to sell, not a sale, since the loan assumption was not completed.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    191 views2 pages

    The Facts Are

    Uploaded by

    Yanyan Marianne
    - MR RL sold three parcels of land to MS LL for 1.1 million pesos and executed a notarized deed of sale, handing over the keys to the properties. - MS LL paid 415,500 pesos as a partial payment and informed the mortgage lender SLC of the agreement to assume MR RL's outstanding loan. - However, MR RL then sold the same properties to ELVIE, changing the locks and taking back the title from SLC after paying off the loan. - MS LL filed a case against MR RL and ELVIE. MR RL claimed it was a contract to sell, not a sale, since the loan assumption was not completed.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    The facts are:

    MR RL sold three parcels of land with improvements to respondent MS LL. As these properties were
    mortgaged to SAVINGS AND LOANS CORPORATION (SLC) , MR RL and MS LL executed a notarized deed
    of absolute sale with assumption of mortgage stating:

    “That for and in consideration of the sum of ONE MILLION ONE HUNDRED THOUSAND PESOS (₱1.1
    million), Philippine currency, the receipt whereof is hereby acknowledged from MS LL to the entire
    satisfaction of MR RL, VENDOR does hereby sell, transfer and convey in a manner absolute and
    irrevocable, unto said VENDEE, his heirs and assigns that certain real estate together with the buildings
    and other improvements, under the following terms and conditions:

    That upon full payment of VENDEE of the amount of FOUR HUNDRED FIFTEEN THOUSAND FIVE
    HUNDRED (₱415,000), VENDOR shall execute and sign a deed of assumption of mortgage in favor of
    VENDEE without any further cost whatsoever;

    That VENDOR shall assume payment of the outstanding loan of SIX HUNDRED EIGHTY FOUR THOUSAND
    FIVE HUNDRED PESOS (₱684,500) … “

    MS LL gave MR RL ₱415,500 as partial payment. MR RL, on the other hand, handed the keys to the
    properties and wrote a letter informing SLC of the sale and authorizing it to accept payment from
    respondent and release the certificates of title. MS LL likewise informed SLC of her agreement with MR
    RL for her to assume MR RL’s outstanding loan. SLC required her to undergo credit investigation.

    Subsequently, MS LL learned that MR RL again sold the same properties to one ELVIE and changed the
    locks, rendering the keys he gave her useless. MS LL thus proceeded to SLC to inquire about the credit
    investigation. However, she was informed that MR RL had already paid the amount due and had taken
    back the certificates of title.

    MS LL filed a complaint for specific performance, declaration of nullity of the second sale and damages
    against MR RL, AND ELVIE in the Regional Trial Court (RTC). She claimed that since petitioner had
    previously sold the properties to her, he no longer had the right to sell the same to ELVIE.

    MR RL insisted that MS LL did not have a cause of action against him and consequently prayed for the
    dismissal of the complaint. He claimed that since the transaction was subject to a condition, they only
    entered into a contract to sell. Inasmuch as MS LL did apply for a loan from SLC, the condition did not
    arise. Consequently, the sale was not perfected and he could freely dispose of the properties.

    Contract of Sale or Contract to Sell?

    It is a contract of sale.

    Based on the facts, it is clear that MR RL intended a sale because he delivered and transferred
    the ownership of the properties to MS LL. It is proved by the time he (MR RL) handles the key
    to MS LL and even considering that he executed a notarized deed of sale. 

    Article 1498 of the Civil Code provides that, as a rule, the execution of a notarized deed of sale
    is equivalent to the delivery of a thing sold. In addition, the petitioner even authorized Savings
    and Loans Corporation to receive payment from respondent and release his certificate to her. 

    Clearly, it was a contract of sale.

    Now, to differentiate Contract of Sale from Contract to Sell:

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