169. Jovellanos vs.

CA
Facts: On September 1955, Daniel Jovellanos and Philamlife Insurance Company
entered into a contract denominated as a lease and conditional sale agreement
over the subject property. At that time, Daniel Jovellanos was married to Leonor
Dizon, with whom he had 3 children, the petitioners herein. Leonor died on January
1959. On May 1967, Daniel married private respondent Annette H. Jovellanos with
whom he begot two children, her herein co-respondents. On January 1975, with the
lease amounts having been paid. Philamlife executed to Daniel Jovellanos a deed of
absolute sale. On September 1985, Daniel Jovellanos died.
Issue: Whether or not the subject property belongs to the conjugal partnership of
the second marriage
Held: Yes. In a conditional sale, ownership is not transferred upon delivery of the
property but upon full payment of the purchase price. Therefore, since the full
ownership was vested upon execution of the deed of absolute sale in 1975 during
the second marriage, the subject property necessarily belonged to his conjugal
partnership with his said second wife applying Article 118 of the Family Code which
provides:
"Art. 118. Property bought on installment paid partly from exclusive funds of either
or both spouses and partly from conjugal funds belongs to the buyer or buyers if full
ownership was vested before the marriage and to the conjugal partnership if such
ownership was vested during the marriage. In either case, any amount advanced by
the partnership or by either or both spouses shall be reimbursed by the owner or
owners upon liquidation of the partnership."