Land sale

Dear Atty. Angela,

I am currently working in Cebu City and I have a house and lot in Manila which I am selling to a potential buyer. I told my trusted agent to represent on my behalf but there was no final arrangement as to the sale. To my surprise, my brother already sold the house and lot to the buyer and claimed that I authorized him to sell the property. Everything was only verbal and there was no written document to authorize him. Was the sale to the third-party binding on me?

Charie

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Dear Charie,

No, based on the facts provided, there is no proof presented of your legal authority for the agent to sell or what is called a Special Power of Attorney.

For the sale of a parcel of land through an agent, Article 1874 of the New Civil Code requires that the authority of the agent should be in writing, to quote:

“ARTICLE 1874. When a sale of a piece of land or any interest therein is through an agent, the authority of the latter shall be in writing; otherwise, the sale shall be void.”

Also, it is provided under Article 1878 (5) of the New Civil Code that a special power of attorney is necessary in order for an agent to enter into any contract which involves the transmission of ownership of an immovable property:

“Article 1878. Special powers of attorney are necessary in the following cases:

x x x (5) To enter into any contract by which the ownership of an immovable is transmitted or acquired either gratuitously or for a valuable consideration;”

As correctly ruled in the case of Spouses Alcantara v. Nido, G.R. No. 165133 (2010), if a person enters into a contract of sale of land without a valid special power of attorney from the owner, then such sale is void. Article 1874 of the Civil Code explicitly requires a written authority before an agent can sell an immovable property.

Consequently, the sale of the lot by an agent who did not have a written authority from the owner will render the sale invalid and void. A void contract produces no effect either against or in favor of anyone and cannot be ratified. As such, as the sale is considered void, you may file a case to invalidate the spurious sale transaction and recover your house and lot.

Atty. Angela Antonio