Dear PAO,
My sister-in-law built an apartment on our lot with our
permission. She is now selling the apartment to us because of some
financial difficulties. Do we still need to execute some documents for
the sale?
JV
Dear JV,
A contract of sale is one where one
of the contracting parties obligates himself to transfer the ownership
of and to deliver a determinate thing, and the other to pay therefor a
price certain in money or its equivalent (Article 1458, Civil Code of
the Philippines). It is a consensual contract which is perfected at the
moment there is a meeting of minds between the seller and the buyer upon
the thing which is the object of the contract and upon its price. From
its perfection, the parties may reciprocally demand performance, subject
to the provisions of the law governing the form of contracts (Article
1475, Civil Code of the Philippines).
As a rule, no other form
shall be necessary for the perfection and validity of a sale. However,
there are certain sales which the law requires to be in writing, not for
its validity, but for its enforceability. Article 1403 of the Civil
Code of the Philippines requires agreements for the sale of real
property or an interest therein to be put into writing:
“Article 1403. The following contracts are unenforceable, unless they are ratified:
xxx
2)
Those that do not comply with the Statue of Frauds as set forth in this
number. In the following cases an agreement hereafter made shall be
unenforceable action, unless the same, or some note or memorandum
thereof, be in writing, and subscribed by the party charged, or by his
agent; evidence, therefore, of the agreement cannot be received without
the writing, or a secondary evidence of its contents:
xxx
e. An agreement for the leasing for a longer period than one year, or for the sale of real property or of an interest therein;
xxx
(emphasis supplied)
Based
on the foregoing, if you will buy the apartment which was built on your
land, you and your wife, as the buyer, and your sister-in-law as the
seller, shall execute a Deed of Sale of the apartment. The deed shall
contain a clear description of the apartment that you are buying, its
price, such other terms that you deem proper provided that they are not
contrary to law, morals, good customs, public order or public policy
(Article 1305, Civil Code of the Philippines).
We hope that we
were able to answer your queries. Please be reminded that this advice is
based solely on the facts you have narrated and our appreciation of the
same. Our opinion may vary when other facts are changed or elaborated.
source: Manila Times' Column of Atty. Persida Acosta
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