C. Bouble Sale - Aits.

1S44 (1), S26, S27

!"#$%&'%$"(%)*+(%&,%-#'(%./%0.*1+(%'#+(%./%2.3#1+('4%

.the owneiship shall be tiansfeiieu to the peison who may have fiist
taken possession theieof in goou faith.

!".%&'%#%5.''(''.)%&,%6..0%/#&$"4%
%
.not awaie that theie exists in his title oi moue of acquisition any flaw
which invaliuates it.

!".%&'%#%5.''(''.)%&,%1#0%/#&$"4%

.who possesses in any case contiaiy to the foiegoing.

!"#$%2#7%1(%#%1#'&'%./%6..0%/#&$"4%

Nistake upon a uoubtful oi uifficult question of law.

!"&-"%&'%5)('*2(08%6..0%/#&$"%.)%1#0%/#&$"4%

uoou faith. Bau faith must be pioven by peison who alleges it.

!"#$%&&'($%)*+',-'.%/0&123'47S SCRA S9u (2uuS)

!"7%0.('%$"(%9
'$
%5*)-"#'()%:)('5.,0(,$;<%#,0%,.$%$"(%=
,0
%5*)-"#'()%
:5($&$&.,();%*,0()%/.)(-+.'*)(%5).-((0&,6'<%"#3(%1($$()%)&6"$4%
%
!2
nu
puichasei is neithei a moitgagee in goou faith noi a puichasei in
goou faith
!Sale with 1
st
puichasei happeneu fiist. Then he took possession,
applieu foi telephone line, anu insuieu piopeity. (actual, physical,
continuous, uninteiiupteu)
!Subsequently, lanu was moitgageu.
!Even though 2
nu
puichasei saiu that the 1
st
sale was ,.$%#,,.$#$(0 at
the back of title, anu as a 6(,()#+%)*+( moitgagees aie not obligeu to go
beyonu the ceitificate of title, 2
nu
puichasei is CBARuEB WITB
uREATER BEuREE 0F BILIuENCE. They aie in the business of ieal
estate, has iesouices to asceitain encumbiances.
!Agent of 2
nu
puichasei infoimeu them that theie is pievious sale.
!>&,-(%2.)$6#6.)%,.%+.,6()%"#'%$&$+(%17%3&)$*(%./%$"(%9
'$
%'#+(<%,.%
2.)$6#6(%?#'%-.,'$&$*$(0@%A(,-(<%/.)(-+.'*)(%./%5).5()$7%&'%
&,(//(-$*#+%#'%?(++@
!Since 2
nu
puichasei has knowleuge of the uniegisteieu sale, he is in
bau faith. Be is not a puichasei in goou faith.

A.?%&'%6..0%/#&$"%#'-()$#&,(04

By acts of one claiming its piesence. It is a conuition of minu which can
only be juugeu by actual oi fancieu token oi signs.

1. ueneial Rule - piioi tempoie, piioi juie

(0$425%//',-'(63'69 SCRA 99 (1976)

!"#$%&'%$"(%/#2.*'%0.-$)&,(%&,%$"&'%-#'(4



!"7%&'%$"(%9
'$
%5*)-"#'()%&,%6..0%/#&$"4%

When Caibonell bought the lot fiom Poncio on }anuaiy 27, 19SS,
she was the only buyei theieof anu the title of Poncio was still in
his name solely encumbeieu by bank moitgage uuly annotateu
theieon. Caibonell was not awaieanu she coulu not have been
awaieof any sale to Infante as theie was no such sale to Infante
then. Bence, Caibonell's piioi puichase of the lanu was maue in
goou faith. Bei goou faith subsisteu anu continueu to exist when
she iecoiueu hei auveise claim foui uays piioi to the
iegistiation of Infantes's ueeu of sale. Caibonell's goou faith uiu
not cease aftei Poncio tolu hei on }anuaiy S1, 19SS of his seconu
sale of the same lot to Infante. Because of that infoimation,
Caibonell wanteu an auuience with Infante, which uesiie
unueiscoies Caibonell's goou faith. With an aiistociatic uisuain
unwoithy of the goou bieeuing of a goou Chiistian anu goou
neighboi, Infante snubbeu Caibonell like a lepei anu iefuseu to
see hei. So Caibonell uiu the next best thing to piotect hei
iightshe iegisteieu hei auveise claim on Febiuaiy 8, 19SS.
0nuei the ciicumstances, this iecoiuing of hei auveise claim
shoulu be ueemeu to have been uone in goou faith anu shoulu
emphasize Infante's bau faith when she iegisteieu hei ueeu of
sale foui uays latei on Febiuaiy 12, 19SS.

!"7%&'%$"(%=
,0
%5*)-"#'()%&,%1#0%/#&$"4%

Bau faith aiising fiom pievious knowleuge by Infante of the piioi
sale to Caibonell is shown by the following facts: (1) Nis. Infante
iefuseu to see Caibonell, who wanteu to see Infante aftei she was
infoimeu by Poncio that he solu the lot to Infante but seveial
uays befoie Infante iegisteieu hei ueeu of sale, This inuicates
that Infante knewfiom Poncio anu fiom the bankof the piioi
sale of the lot by Poncio to Caibonell. x x x (2) Caibonell was
alieauy in possession of the moitgage passbook anu Poncio's
copy of the moitgage contiact, when Poncio solu the lot to
Infante. This also shows that the lot was alieauy solu to Caibonell
who, aftei paying the aiieaiages of Poncio, assumeu the balance
of his moitgage inuebteuness to the bank, which in the noimal
couise of business must have necessaiily infoimeu Infante about
the saiu assumption by Caibonell of the moitgage inuebteuness
of Poncio. x x x (S) The fact that Poncio was no longei in
possession of his moitgage passbook shoulu have compelleu
Infante to inquiie fiom Poncio why he was no longei in
possession of the moitgage passbook anu fiom Caibonell why
she was in possession of the same, x x x (4) Caibonell iegisteieu
on Febiuaiy 8, 19SS hei auveise claim which was accoiuingly
annotateu on Poncio's title, foui uays befoie Infante iegisteieu
on Febiuaiy 12, 19SS hei ueeu of sale executeu on Febiuaiy 2,
19SS. Beie she was again on notice on the piioi sale to Caibonell.
(S) Poncio allegeu that both puichaseis offeieu to buy the lot.
Infante shoulu have inquiieu whose offei was accepteu.

78%0)'(9.')*:%&+'*5'422;<'
'
7=%%'>%%?05;%%@&'2#*5*25<'

' ' >05:/02',-'A0$B5:023'SSS SCRA 12S (2uu7)

!"#$%5)&2#)7%)*+(%6.3(),'%0.*1+(%'#+(%./%&22.3#1+(4%

Piius tempoie, piius juie.

!"7%&'%$"(%=
,0
%1*7()%:5($&$&.,();%&,%1#0%/#&$"4
!At the time of 2
nu
sale, theie weie alieauy occupants anu
impiovements on the lots.
!2
nu
buyei must investigate iights of cuiient possessois.
!without investigation, he is not a buyei in goou faith.
!cannot iely on inuefeasibility of TCT.
!They aie tiansfeiees of the TCT. But they took the TCT in bau
faith.
!1
st
puichaseis weie 1
st
possessois. Bence, owneiship applies
to them.

!".%"#'%1*)0(,%./%5).3&,6%B6..0%/#&$"C%./%=
,0
%1*7()4%
!0pon him who asseits "goou faith" status.
!"uoou faith" is not piesumeu, foi puiposes of establishing that
one is an "innocent puichasei foi value".

7>?*&'10&%'$%*+%$0+%&'+?%'C(0$4255%/D')21+$*5%<'

2. Requisites

(?%5:',-'E%50+23'Suu SCRA 722 (1998)

!"#$%#)(%$"(%)(D*&'&$('%1(/.)(%E)$@%9FGG%.,%0.*1+(%'#+(%
#55+&('4%
%

%
!"7%&'%$"()(%0.*1+(%'#+(%(3(,%$".*6"%9
'$
%5*)-"#'()%?#'%
1#'(0%.,%-.,$)#-$%$.%'(++4%
! The CTS's weie not valiuly iescinueu. No uefault happeneu
because Su-uay extension peiiou has not expiieu. No affiuavit of
iescission was necessaiy, but notice of iescission to 1
st
buyei is
iequiieu.
! "Fiist in time, stiongei in iight." This piinciple 0NLY applies
when iequisites above aie not met.
! Registeieu long befoie intiusion of 2
nu
puichasei.
! even if 2
nu
puichasei successfully iegisteieu it, but in bau
faith, 1
st
puichasei's iight must be uphelu.
! even if 1
st
puichasei has knowleuge of 2
nu
sale, if he iegisteis
fiist, then he has bettei iight.
! 2
nu
puichasei knew facts which shoulu have put him into
inquiiy upon the title.

!"#$%#)(%$"(%)(D*&'&$('%1(/.)(%=
,0
%5*)-"#'(%2#7%0&'5+#-(%9
'$
%
5*)-"#'()<%#'%5()%E)$@%9FGG4%



!"#$%#)(%$"(%)(D*&'&$('%./%H(6&'$)#$&.,4
!any entiy maue in the books of Registiy.
!annotation of "contiact to sell" moie than satisfies the
iequiiement.

S. Puichasei in uoou Faith - Aits. S26, S27, S28

Ait. S26. Be is ueemeu a possessoi in goou faith who is not awaie
that theie exists in his title oi moue of acquisition any flaw which
invaliuates it.

Be is ueemeu a possessoi in bau faith who possesses in any case
contiaiy to the foiegoing.

Nistake upon a uoubtful oi uifficult question of law may be the
basis of goou faith.

Ait. S27. uoou faith is always piesumeu, anu upon him who
alleges bau faith on the pait of a possessoi iests the buiuen of
pioof.

!"(,% 0.('% #% 5.''(''.)% &,% 6..0% /#&$"% +.'(% "&'% B6..0% /#&$"C%
-"#)#-$()4%

When the possessoi is not unawaie that he possesses the thing
impiopeily oi wiongfully.

A0F/0:2',-'G0$04%3'22 SCRA 1247 (1968)

I,%-#'(%./%0.*1+(%'#+(<%?".%"#'%1($$()%)&6"$8%)(6&'$()(0%=
,0
%
1*7()%.)%*,)(6&'$()(0%9
'$
%1*7()4
!ueneial iule: buyei who iegisteieu in goou faith has bettei
iight ovei piioi buyei even if he is in possession.
!In this case, howevei, the iegisteiing 2
nu
buyei is in "bau faith".

!"7%&'%$"()(%1#0%/#&$"%.,%$"(%5#)$%./%=
,0
%)(6&'$()&,6%1*7()4
!they knew befoiehanu that the 1
st
uniegisteieu buyei owns
the lot.
!awaie of the possession by 1
st
buyei
!they leaseu a lanu fiom the 1
st
buyei acioss the stieet, but
since the lanu in question has well-uefineu bounuaiies, they must
have known that the lanu in question was incluueu in the
uesciiption.

!"#$%&'%$"(%.1+&6#$&.,%./%#%5*)-"#'()%&,%6..0%/#&$"4
!having knowleuge of facts, he is put upon inquiiy as to possible
uefects of title, failing which he cannot claim goou faith.
!meie iefusal to believe oi willful closing of eyes to the possible
uefect of title will not make him an innocent puichasei foi value.

A.?%0.('%$"&'%-#'(%0(/&,(%6..0%/#&$"4
!without knowleuge of the alienation by venuoi to a stiangei.

!"#$%&'%$"(%(//(-$%./%)(6&'$)#$&.,%./%5*)-"#'()%&,%1#0%/#&$"4
!vitiateu title.
!cieates no iight as against the 1
st
puichasei.
!iationale: in oiuei not to make the Toiiens a shielu foi
commission of fiauu.

A.?%?#'%$"(%&0(,$&$7%./%$"(%+#,0%&,%D*('$&.,%('$#1+&'"(04%
!iuentifieu anu segiegateu thiough bounuaiies maikeu anu
iuentifieu with "mauie cacao tiees".
!What uefines a lanu is not the aiea but the bounuaiies.
!suiveyoi hiieu by iegisteiing buyei fixeu the bounuaiies fiom
aujoining piopeity.

A.?%?#'%$"(%/&)'$%*,)(6&'$()(0%0((0%./%'#+(%#--(5$(0%#'%
(3&0(,-(4
!uestiuction of instiument may be pioveu by any peison
knowing the fact.
!aftei pioving uue execution anu ueliveiy of instiument, anu
the fact that it has been uestioyeu, its contents may be pioveu by
iecollection of witnesses.

' ' 6:$*1B/+B$0/'H'I2J%'!"+%5&*25',-'(63'21S SCRA SS6 (1992)

!"#$%&'%$"(%0.*1+(%'#+(%"()(4
!1
st
sale is uniegisteieu. 2
nu
sale is iegisteieu.
!But the issue is whethei 2
nu
buyei in goou faith.

!"#$%&'%#%5*)-"#'()%&,%6..0%/#&$"4
!one who buys piopeity of anothei without notice that some
othei peison has a iight oi inteiest in such piopeity anu pays a
full anu faii piice foi the same at the time of such puichase oi
befoie he has notice of the claim oi inteiest of some othei peison
in the piopeity.

!"#$%&'%$"(%(//(-$%./%)(6&'$)#$&.,%*,0()%J.))(,'%'7'$(24%
A.?%&'%&$%0&//()(,$%/).2%#%!"#$%&'(&'#%
!It is the opeiative act to convey oi affect the lanu insofai as
thiiu peisons aie conceineu.
!It is a lien oi encumbiance.
!Lis penuens notice uoes not have effect of establishing a lien oi
encumbiance.

!"7%&'%=
,0
%1*7()%&,%6..0%/#&$"4%
!acquiieu piopeity fiee of liens oi encumbiances thiee uays
aftei execution of ueeu of sale (lis penuens weie cancelleu by
viitue of couit oiueis).
!no pioof that 1
st
buyei is in possession of the piopeity.

!"#$%0.('%K06#)0.%L#)#'M%-.22(,$#)7%'#74%
!uR: no one can sell what he uoes not own. EX: Ait. 1S44.
!But is this ieally an exception. It only ieiteiates that insofai as
S
iu
peisons aie conceineu, iegisteieu ownei (ieal piopeity) is
still the ownei, with powei of uisposition.

4. Sale of Novables - Aits. 1S44, 1497, - 1Su1

!"#$%&'%$"(%)*+(%&,%-#'(%./%0.*1+(%'#+(%./%2.3#1+('4%

.the owneiship shall be tiansfeiieu to the peison who may have
fiist taken possession theieof in goou faith.

78%,*%K'J2)%&'2L')%/*,%$F<'

8*,%$0',-'M5:3' S7 Phil. SSS (1917)

!"#$%0.('%$"(%=
,0
%1*7()%"#3(%1($$()%$&$+(%$"#,%9
'$
%%1*7()4%
!he acquiieu possession.
!the only uifficulty is the title of the venuoi: theie is some
question as to who is oiiginal ownei, oi whethei the venuoi
inueeu was an ownei.
!In any case, the house of Lichauco hau authoiity to sell it: it is
simply a case wheie 2 agents of same ownei successively
negotiateu sales to 2 uiffeient puichaseis. It is just a mistake of
selling something alieauy solu.
!1
st
buyei faileu to piove title in himself. Be cannot iely on
weakness of 2
nu
buyei's title.
!fact that thing oiiginally belong to ualo Lichauco (Ciisanta
Lichauco was the venuoi) is not sufficient, without moie, to
uefeat a title acquiieu by 2
nu
buyei thiough the house of
Lichauco.

S. Sale of Immovables - Ait. 1S44 (2)

!"#$%#)(%$"(%5)(/())(0%#-$'%&,%0.*1+(%'#+(%./%&22.3#1+(4%
%
1. Registiation in goou faith
2. Possession in goou faith
S. 0luest title, with goou faith

(25&2/*)0+%)',-'(63'448 SCRA S47 (2uuS)

!"7%&'%E)$@%9FGG%,.$%#55+&-#1+(4%:&@(@%!"7%&'%$"()(%,.%0.*1+(%
'#+(4;%


%
!not tiansfeiieu to seveial buyeis by a single sellei. 1
st
sellei:
Rizal Nauiiu, with confoimity of Nauiiu Biotheis. 2
nu
sellei:
Nauiiu Biotheis, who weie no longei owneis.
!iequisite foi conveyance: conveyei has iight anu will to
convey the thing. (Intent is not sufficient).
!even if the 2
nu
sale was iegisteieu in goou faith, when the
venuoi is not the ownei, then the 1
st
buyei has bettei iight.
%
!"#$%)*+(%'".*+0%#55+7%?"(,%E)$@%9FGG%,.$%#55+&-#1+(%
1(-#*'(%,.$%#++%)(D*&'&$('%#)(%5)('(,$4%
!"potioi tempoie, potioi juie", which can only be invokeu by the
1
st
buyei
!sale to uamiao anu Bayag heiis was anteiioi to sale by Nauiiu
Biotheis to Naiquez.
!1
st
buyei also possesseu the piopeity
!"nemo uat quou non habet": no one can give what he uoes not
have.
!Assuming iule on uouble sale applies, 2
nu
buyei still cannot
acquiie because he is not puichasei in goou faith. Be knows the
lanu is in possession of anothei, anu he shoulu have inquiieu
iights of those in possession.
!iule of "caveat emptoi": puichasei must be awaie of supposeu
title of venuoi. 0ne who buys without checking venuoi's title
takes all iisks anu losses consequent to such failuie.

!"7%&'%$"(%)(6&'$)#$&.,%?&$".*$%(//(-$4%
!Registiation meiely confiims title alieauy vesteuexisting.
They can't be useu to piotect usuipei fiom tiue ownei, noi can
be useu in peipetiation of fiauu.

!"7%&'%5).3&,6%$"(%B6..0%/#&$"C%./%9
'$
%1*7()%&))(+(3#,$4
!iequiiement of goou faith in possession not applicable when
theie is no seconu sale.
!iegulaiity of the sale to pieuecessois uamiao anu Bayag was
nevei contesteu by Naiquez (2
nu
buyei).
!tax ueclaiations aie inuicia of possession in the concept of an
ownei.

6. Sale by viitue of Execution oi Attachment

(25&2/*)0+%)',-'(63'S1 SCRA SS8 (197u) (0$BJ40',&-'(6'
'
!"7%&'%E)$@%9FGG%,.$%#55+&-#1+(4%:&@(@%!"7%&'%$"()(%,.%0.*1+(%
'#+(4;
!the puichasei of uniegisteieu lanu at a sheiiff's execution sale
only steps into the shoes of the juugment uebtoi, anu meiely
acquiies the lattei's inteiest in the piopeity solu as of the time
the piopeity was levieu upon. (Sec. SS, Rule S9, Rules of Couit)
!when the levy was maue by sheiiff, the juugment uebtoi no
longei hau uominical inteiest noi any ieal iight ovei the lanu
that coulu pass to the buyei at the execution sale. Bence, sale to
petitionei Caiumba is uphelu.
!sale to 1
st
buyei was maue 2 yeais piioi to the execution sale.

' ' N0:B#05',-'O010J3'14 SCRA 179 (196S)

!"7%&'%$"(%)(6&'$)#$&.,%./%+#,0%)(+(3#,$4

As a geneial iule, if lanu is uniegisteieu, uouble sale is iesolveu
by piioi possession. If lanu is iegisteieu, the uouble is iesolveu
by piefeiiing the iegisteieu ueeu.

!"7%&'%$"&'%6(,()#+%)*+(%,.$%#55+&-#1+(4

Because the 1
st
sale is maue befoie lanu iegistiation, anu 2
nu
sale
is maue aftei lanu iegistiation.

!"#$%'".*+0%#55+74

Sec. SS, Rule S9 of R0C: "substitution" by puichasei of inteiest of
juugment uebtoi at the time of levy.

!"#$%&'%$"(%&,$()('$%./%N#).,%#$%$"(%$&2(%./%+(374

None. The fiist sale was not cancelleu just because the lanu was
subsequently iegisteieu. It is not affecteu by subsequent levy oi
attachment.

To uepiive Naion of owneiship is against equity. Be alieauy
maue impiovements on the lot. Bis inteiest has alieauy been
fully anu iiietiivably conveyeu.

7. 0niegisteieu Lanu - PB 1S29, Section 11S



I052#2/',-'A*/0#*/3'7 SCRA 4S2 (196S)

O.('%E)$@%9FGG%#55+7%.,+7%$.%)(6&'$()(0%+#,04
!No. It applies to uniegisteieu lanu as well. Bowevei, foi
uniegisteieu lanu, "bettei iight" is aujuugeu uiffeiently.

!"#$%&'%#%B1($$()%)&6"$C%$"#$%&'%5).$(-$(0%#6#&,'$%&,'-)&5$&.,%
./%#%'*1'(D*(,$%'#+(<%?"(,%$"(%+#,0%&'%*,)(6&'$()(04
!It is much moie than the meie piioi ueeu of sale, in favoi of 1
st

venuee.
!"Lichauco" case: piesciiptive iight supeivenes, anu "othei facts
anu ciicumstances.in auuition to the ueeu of sale"
!e.g. sellei sells lanu but he continues as lessee. Then sellei solu
the lanu again to anothei. The lease by the pievious ownei is
possession by the new ownei.

!"7%0.('%L&+#5&+%"#3(%#%1($$()%)&6"$%.3()%A#,.5.+4
!Pilapil was not shown to be a puichasei in bau faith.
!No eviuence that Banopol was in possession of the lanu. Siapos
weie in actual occupancy unuei claim of owneiship, when they
solu lanu to Pilapil. Bence, possession was tiansmitteu
C0NSTR0CTIvELY to Pilapil, by the execution of the notaiial
ueeu of sale, if not actually anu physically.

8. Fiist Possession in uoou Faith

=051?%P',-'80J2&3'4u Phil. 614 (1919)



P,0()%E)$@%9FGG<%?"#$%0.('%5.''(''&.,%2(#,%?"(,%,.$%.,(%
0.-*2(,$%./%'#+(%"#'%1((,%)(-.)0(04
!It iefeis to all kinus of possession: mateiial occupancy, subject
to the action of oui will, appiopiiate acts anu legal foimalities
establisheu foi acquiiing possession.
!Incluues "symbolic" possession.

!"#$%&'%$"(%'$#$*'%./%#%'721.+&-%5.''(''&.,%$").*6"%
(Q(-*$&.,%./%5*1+&-%&,'$)*2(,$8%&'%&$%&,-+*0(0%&,%B2#$()&#+%
5.''(''&.,C%:?"&-"%&'%"&6"()%&,%5)(/()(,-(;%.)%&,%B0#$(%./%
$&$+(C%:?"&-"%&'%,(Q$R+.?()%&,%5)(/()(,-(;4%
!Execution of public instiument is equivalent to ueliveiy anu
possession by venuee; sale is consummateu; tiansfei is
completeu; venuoi has no moie iight; if the venuoi continues in
mateiial possession, it is only #2&&%&&*25')%'L01+2 (i.e. by meie
toleiance of venuee).
!Symbolic possession thiough execution of public instiument is
not lowei in piefeience than mateiial possession.
!Bence, the sale thiough execution of public instiument is
consiueieu as "fiist to take possession" of the lanu. This cannot
be uefeateu by the 2
nu
buyei's #2&&%&&*25')%'L01+2.

' ' QB*J&25',-'82&%+%3'87 Phil. 1S9 (19Su)

!".%?#'%5)&.)%&,%5.''(''&.,4%
!1
st
puichasei.

!"#$%&'%5.''(''&.,%/.)%5*)5.'('%./%E)$@%9FGG4%
!symbolic possession: execution of notaiial uocument of sale is
sufficient ueliveiy of piopeity solu.
!symbolic possession effects conveyance, tiansfeis owneiship
!affiims Sanchez vs. Roman uoctiine

!"7%&'%)*+,-(.%-#'(%,.$%-.,$).++&,64%
! the execution was set asiue because it was a sham, hence couit
affiimeu physical possession. In geneial, howevei, physical
possession is not necessaiy when symbolic possession may
suffice, thiough execution.

' ' R%0+*5:2',-'E0&*&3'u.R. No. 179641, 9 Febiuaiy 2u11

O('-)&1(%$"(%0.*1+(%'#+(%#,0%?"#$%5).1+(2%#).'(@%
!sellei solu piopeity to 2 uiffeient buyeis.
!The two sales weie not iegisteieu with the Registiy. Since
theie was no insciiption, who between the two buyeis fiist took
possession in goou faith.
!petitionei executeu public instiument (notaiizeu ueeu of sale),
but iesponuent took actual possession. Bowevei, execution went
fiist befoie actual possession.

!"7%0.('%$"(%=
,0
%1*7()%?".%$..S%#-$*#+%5.''(''&.,%"#3(%
1($$()%)&6"$4
!Execution of public instiument gives iise only to a #$*J0'L01*%
piesumption of ueliveiy.
!Piesumption is )%%J%)'5%:0+%) by failuie of venuee to take
actual possession of the lanu.
!buyei who executeu instiument aumitteu: she iefuseu to make
full payment on piopeity anu iefuseu to take actual possession
because of piesence of tenants
!iesponuent showeu that she puichaseu piopeity without
knowleuge that it hau been eailiei solu. She solu piice in full anu
0CT was ueliveieu. She then took possession anu exeiciseu acts
of uominion by collecting ient fiom tenants.

9. 0luest Title - Ait 1S44 (S)

Shoulu theie be no insciiption, the owneiship shall peitain to the
peison who in goou faith was fiist in the possession; anu, in the
absence theieof, to the peison who piesents the oluest title,
pioviueu theie is goou faith.

B. Risk of Loss

1. ueneial Rule - Ait. 126S

!"#$% &'% $"(% )*+(% ?"(,% #% 6(,()&-% $"&,6<% ?"&-"% .1+&6.)% 2*'$%
0(+&3()<%&'%+.'$R0('$).7(04

0bligation is not extinguisheu. Belivei same kinu.

2. Loss Befoie Peifection

82J05',-'E$*J0/+3'6 Phil 96 (19u6)

!".%1(#)'%$"(%+.''%#,0%?"74
!The oiiginal ownei, because no sale was peifecteu.
!Theie was no peifection because the buyei imposeu as
conuition the piouuction of piopei papeis on the vessel,
changing the name of ownei fiom Paulina uiion to Peuio Roman
(the ieal ownei). Roman faileu to comply with conuition. The
papeis uo not show that he is the ownei.
!Then the vessel sank.

!"7%#)(%$"(%.$"()%)*+('%.,%B1(#)&,6%./%+.''R)&'SC%,.$%
#55+&-#1+(4
!No sale was peifecteu. Sale being iecipiocal, the conuition was
not fulfilleu, so the buyei hau no obligation to pay the piice. It
was not consummateu.


S. Loss at the Time of Peifection - Aits. 149S, 1494

!"#$% &'% $"(% (//(-$% ./% $"(% $.$#+% +.''% ./% .1T(-$% ./% '#+(% #$% $&2(% ./%
5()/(-$&.,4 Contiact of sale is without effect.

U&/%+.''%&'%5#)$&#+4%Buyei has two options: withuiaw, oi uemanu
iemaining pait (paying piopoitional piice)

!"#$% #)(% .5$&.,'% ./% 1*7()% ?"(,% '5(-&/&-% 6..0'% .,% '#+(% "#3(%
5()&'"(0% ?".++7R5#)$&#++7R'*1'$#,$&#++7% -"#,6(0% &,%
-"#)#-$()4 Two options: avoiu sale, oi if sale is uivisible,
uemanu iemaining pait (paying piopoitional piice.

S2$;*&',-'(63'19S SCRA 694 (1991)

!"7%0&0%$"(%'(++()%1(#)%$"(%?)(#-S#6(%./%$"(%2.$.)-7-+(4
!theie was no ueliveiy (actual oi constiuctive) hence no
tiansfei of owneiship.
!uR: things solu iemain at sellei's iisk until owneiship is
tiansfeiieu to buyei. EX: Expiess assumption of iisk by buyei.

!"7%?#'%$"()(%,.%0(+&3()74
!issuance of sales invoice uoes not piove tiansfei of owneiship.
!act of ueliveiy, without intent to uelivei, is insufficient.
!when motoicycle was iegisteieu by ownei in name of buyei,
theie was no intent yet to tiansfei title oi owneiship. It was only
to facilitate the execution of a chattel moitgage in favoi of BBP
foi the ielease of the buyei's motoicycle loan. (Pioof: Lettei of
uuaiantee issueu by BBP states that execution of chattel is pie-
iequisite foi appioval of buyei's loan)
!Fiction yielus to ieality.
!Puipose of invoice execution anu iegistiation unuei buyei's
name is to comply with BBP iequiiements.

4. Loss aftei Peifection but Befoie Beliveiy - Aits. 148u in ielation to Aits.
116S - 116S; Aits. 1189 anu 1262

a. ueneial Rule - $%&'#%$*+')2J*52

Thing is lost to the ownei.

b. Loss by fault of a paity - Aits. 148u, 1Su4, 1SS8, 16S6

c. Loss by foituitous events - Aits. 148u, 116S, 116S, 1Su4, 1SS8,
1189

u. Fiuits oi Impiovements - Ait. 1SS7

S. Aftei Beliveiy - Ait. 1Su4

V7% 0(/#*+$<% ?".% 1(#)'% )&'S% ./% +.''% 1(/.)(% $)#,'/()% ./%
.?,()'"&54%
Sellei.

!".%1(#)'%$"(%)&'S%#/$()%$)#,'/()4%
Buyei.

I'%#-$*#+%0(+&3()7%,(-(''#)74%
No. Constiuctive ueliveiy may suffice.

!"#$%#)(%$?.%(Q-(5$&.,'%$.%$"(%)&'S%1.),(%17%'(++()4%
1. When owneiship ietaineu by sellei meiely as secuiity, but
thing is ueliveieu. ! buyei's iisk fiom time of ueliveiy
2. When actual ueliveiy is uelayeu thiough fault of one paity !
iisk boine by paity at fault.

=B5'R$2&-',-'A%$%P3'7 SCRA 977 (196S)

J&$+(%)(2#&,'%?&$"%'(++()<%1*$%$"()(%&'%'$&5*+#$&.,%$"#$%1*7()%
1(#)'%$"(%+.''<%&,-+*0&,6%/.)$*&$.*'%(3(,$@%I'%$"&'%3#+&0%
'$&5*+#$&.,4
!Yes. It is not contiaiy to law, moials, public policy, etc.
!Title iemaineu with sellei because of non-payment.
!Thiee basis foi valiuity: (1) absolute anu unconuitional natuie
of buyei's piomise to pay, (2) sellei has fully peifoimeu his
contiact & buyei acquiieu iight to take possessionuse of the
goous, anu (S) to incentivize buyei to take caie of piopeity while
title iemains with sellei on the meantime that piice has not yet
been fully paiu.

' ' 90KF%$@&'(22#',-'>042$03'1S SCRA 762 (196S)

!"7%0&0%1*7()%1(#)%$"(%+.''%./%1..S'%(3(,%&/%$&$+(%)(2#&,(0%
?&$"%'(++()%*,$&+%5#72(,$%./%5)&-(4
!theie was expiess stipulation.
!puipose of ietention of title was to secuie the peifoimance of
the obligation of buyei.

!"7%&'%1*7()%'$&++%+&#1+(%(3(,%&/%+.''%&'%$").*6"%/.)$*&$.*'%
(3(,$4
!The obligation uoes not iefei to a ueteiminate thing. It is
pecuniaiy in natuie.
!Buyei is exempt because of foituitous event if thing is
ueteiminate anu theie is no stipulation holuing him liable even in
case of foituitous event.

' ' =25:'T2',-'M$*03'SS Phil. S (191S)