REPUBLIC OF THE PHILIPPINES REGIONAL TRIAL COURTS CITY OF MANILA

JOHN DEE, Plaintiff -versusJUAN DOE, Defendant x-------------------------------------x CIVIL CASE NO. _________ For: Recovery of Ownership

ANSWER TO A COMPLAINT

COMES NOW, the defendant, by the undersigned counsel, and in answer to plaintiffs complaint, respectfully alleges: 1. That defendant admits paragraphs (2) and (3) of the complaint; 2. And as AFFIRMATIVE DEFENSES, the defendant alleges: A. That John Dee leased to him Lot No. 1111, and that he is renting from the former for a term of fifty (50) years from May 12, 1996 at a yearly rental of Php264,000.00 payable in equal monthly installments of Php22,000 in advance on the first day of each and every month, as evidenced by their Agreement Of Lease With Option to Purchase (Attachment A); B. That the aforementioned agreement states that if he shall give written notice to John Dee on or before May 12, 2011 of his desire to purchase the property leased therein, John Dee upon receipt of the agreed price of Php 12,000,000.00 (minus the monthly rentals already paid by Juan Doe), by appropriate deed SELL, TRANSFER and CONVEY said property to him together with all the fixtures and accessories thereof, free from all liens and encumbrances; C. That he gave written notice of his desire to purchase Lot No. 1111 to John Dee and that he delivered Php 8,040.000.00 in check to him (John Dee) as evidenced by this receipt dated March 04, 2010 and signed by the plaintiff (Attachment B);

3. As COUNTERCLAIM against the plaintiff, the defendant alleges: A. That Lot No. 1111 located at 678 Bonete Street, Manila has been sold to him and should therefore be transferred and conveyed to him accordingly;

WHEREFORE, it is respectfully prayed that: (a) Judgment will be rendered in favor of the defendant for right to possess the subject property; (b) That plaintiff be ordered to transfer and convey ownership of subject property to defendant; (c) That plaintiff be ordered to pay actual and moral damages, and attorneys fees. (d) For such other relief consistent with law and equity, and for costs.

City of Manila, January 17, 2013.

DONALI GEM M. PABLEO Counsel for Defendant 100 San Fabian, Echague, Isabela Roll of Attorney No. 98765 IBP No. 33333/3-4-12/Isabela

AGREEMENT OF LEASE WITH OPTION TO PURCHASE This AGREEMENT made this 12th day of May, 1996 between: John Dee, residing at 123 Bonita Street, Manila, herein referred to as SELLER, and Juan Doe, residing at 456 Benito Street, Manila, herein referred to as PURCHASER.

WITNESSETH: WHEREAS, the SELLER own a certain property located at 678 Bonete Street, Manila described as Lot No. 1111 and covered by Original Certificate of Title No. M-2222 issued by the Register of Deeds of the City of Manila, and WHEREAS, the PURCHASER desires to rent said property with option to purchase same; WHEREFORE, it is mutually agreed: 1. The SELLER hereby leases to the PURCHASE and the PURCHASER hereby rents from the SELLER for a term of fifty (50) years from this date at a yearly rental of Php264,000.00 payable in equal monthly installments of Php22,000 in advance on the first day of each and every month during the period aforesaid, the said property with all its fixtures and accessories described in the Schedule hereto attached and made an integral part hereof; 2. The SELLER warrants to the PURCHASER that he is the absolute owner of the said property, free from all liens and encumbrances; 3. The PURCHASER shall during the period of the lease exercise due care and diligence in the use of said property and shall, at his cost and expense, keep the same in good and usable condition for which it has been leased; 4. That until the SELLER regains possession of the property herein leased in accordance with the terms hereof, the PURCHASER, at his own cost and expense, shall pay all taxes and assessments levied and payable on said property; 5. If PURCHASER fails to pay the rental when same becomes due, then SELLER, at his option and without prior notice or demand, may take or regain possession of the said property and for this purpose may enter the premises without liability to any suit, action, or proceeding by the PURCHASER; 6. Upon the SELLER regaining possession of said property pursuant to the above provision, this AGREEMENT shall forthwith terminate, without prejudice to the right of SELLER to rentals is arrears, if any;

7. That if the PURCHASER shall give written notice to the SELLER on or before May 12, 2011 of his desire to purchase the property leased therein, John Dee upon receipt of the agreed price of Php 12,000,000.00 (minus the monthly rentals already paid by Juan Doe), by appropriate deed SELL, TRANSFER and CONVEY said property to him together with all the fixtures and accessories thereof, free from all liens and encumbrances; IN WITNESS WHEREOF, the Parties hereto have signed this AGREEMENT the day and year first above written.

JOHN DEE Seller

JUAN DEE Purchaser In the presence of: LOUPA HAMPAS Witness MARIMAR ESTONITASOY Witness

(ACKNOWLEDGMENT p. 25)