Dear Atty. Nico,

I would like to consult with you my legal problem regarding the real property I inherited from my deceased grandmother. During her lifetime, she used to own a parcel of land, around 500 sq. meters, in Lukban, Quezon.

Just before I turned 18, she died. Thus, I was given away to my aunt in Mandaluyong as my parents were no longer around. At that time, I was not aware of the said property. It was only recently when the city government of Lukban sent me a notice to pay the arrears that I discovered of its existence. To my surprise, the property in issue was already in possession of my uncle, who was the nephew of my grandmother. He claimed that a sale between the two of them happened where he paid the purchase price in installment (the first installment was given to my grandmother while the rest was paid to my aunt who became my de facto guardian).

However, when he was asked to produce the written agreement of the said sale, he admitted that there was none, as the sale was made verbally. Is the purported sale between my deceased grandmother and my uncle valid, although it was not in writing? What legal remedy can I take against my uncle?

Melissa

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Dear Melissa,

Yes, the unwritten sale of the real property in issue is valid. In the case of Spouses Ocampo vs. Batara-Sapad and Batara, the Supreme Court mentioned that although Articles 1358 and 1403 (2)(e) of the Civil Code ordain inter alia that “contracts for the sale of real property must be made in a public document and subscribed by the party charged or his agent; otherwise they cannot be enforced by action, and evidence thereof ‘cannot be received without the writing, or a secondary evidence of its contents.’ This requirement, however, does not affect the validity of such contracts, because the Civil Code ‘does not require accomplishment of acts or contracts in a public instrument in order to validate the act or contract but only to insure its efficacy so that after the existence of the act or contract has been admitted, the party bound may be compelled to execute the document.

Furthermore, the scope of Article 1403 (2) is limited to the enforcement of an unwritten contract. It does not apply to contracts that have been partially or totally implemented and ‘taking possession of the property and making improvements thereon serve as indicators that an oral sale of a piece of land had already been executed.’”

In relation to your query on legal remedy, you may require him to pay the unpaid installment of the purchase price as your aunt, by law, is not authorized to receive payment on behalf of your grandmother.

In the same case abovementioned, the Court, citing Cembrano v. City of Butuan, explained the effect of payment to an unauthorized person… When payment is made to the wrong party, however, the obligation is not extinguished as to the creditor who is without fault or negligence even if the debtor acted in utmost good faith and by mistake as to the person of the creditor or through error induced by fraud of a third person. In general, a payment in order to be effective to discharge an obligation, must be made to the proper person. Thus, payment must be made to the obligee himself or to an agent having   authority, express or implied, to receive the particular payment.

Under the facts stated, it is safe to assume that your aunt was not authorized by your deceased grandmother to accept payment for the remaining installment of the purchase price. Therefore, any payment given to her cannot bind the latter or you as the successor.

Atty. Nico Antonio