1) Chua agreed to purchase a house from Valdez-Cho. They agreed to payments in 3 parts - earnest money, capital gains tax, and the balance.
2) Before paying the final payment, Chua required the property to be registered under her name. This angered Valdez-Cho and they tore up the deed of sale.
3) The Court of Appeals ruled in favor of Valdez-Cho, finding their agreement was a contract to sell, not a contract of sale. Chua now appeals to reverse this decision.
1) Chua agreed to purchase a house from Valdez-Cho. They agreed to payments in 3 parts - earnest money, capital gains tax, and the balance.
2) Before paying the final payment, Chua required the property to be registered under her name. This angered Valdez-Cho and they tore up the deed of sale.
3) The Court of Appeals ruled in favor of Valdez-Cho, finding their agreement was a contract to sell, not a contract of sale. Chua now appeals to reverse this decision.
1) Chua agreed to purchase a house from Valdez-Cho. They agreed to payments in 3 parts - earnest money, capital gains tax, and the balance.
2) Before paying the final payment, Chua required the property to be registered under her name. This angered Valdez-Cho and they tore up the deed of sale.
3) The Court of Appeals ruled in favor of Valdez-Cho, finding their agreement was a contract to sell, not a contract of sale. Chua now appeals to reverse this decision.
1) Chua agreed to purchase a house from Valdez-Cho. They agreed to payments in 3 parts - earnest money, capital gains tax, and the balance.
2) Before paying the final payment, Chua required the property to be registered under her name. This angered Valdez-Cho and they tore up the deed of sale.
3) The Court of Appeals ruled in favor of Valdez-Cho, finding their agreement was a contract to sell, not a contract of sale. Chua now appeals to reverse this decision.
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Tomas K.
Chua vs Court of Appeals
G.R. No. 119255 April 9, 2003 Fats! Chua a"s#ere$ to the a$vertiseme"t of %al$es&Cho' selli"( her parapher"al house. As their a(reeme"t, Chua pai$ the other for the ear"est mo"e' a"$ apital (ai"s ta). *o#ever +ust ,efore Chua is to (ive the last pa'me"t, she re-uire$ %al$es&Cho' to re(ister the propert' i" her "ame first ,efore she (ive the fi"al pa'me"t. This atio" a"(ere$ %al$es&Cho' a"$ tore the .ee$ of /ale. Chua the" #e"t to the Trial Court fili"( for %al$es&Cho'0s speifi performa"e a"$ #o". %al$es& Cho' after file for a" appeal a"$ the Court of Appeals rule$ i" her favor. Chua "o# see1s to reverse ourt0s $eisio". 2ssue! 3hether or "ot the o"trat ,et#ee" the t#o parties is a o"trat of sale or o"trat to sell4 Ruli"(! .eisio" of the Court of Appeals affirme$. The o"trat ,et#ee" the t#o is o"trat to sell. 5"li1e i" the o"trat of sale, the parties a(ree$ for the pa'me"ts to ,e $ivi$e$ i" 3 parts, "amel', the ear"est mo"e', apital (ai"s ta) a"$ the purhase prie ,ala"e. The ve"$or is re-uire$ to (ive the propert' to the ve"$ee o"l' after the pa'i"( the full purhase prie. 2" o"trat of sale, there is "o partial pa'me"t. The ve"$or or seller is re-uire$ to $eliver the thi"( imme$iatel' to the ,u'er after pa'me"t.
.otri"e! 2" a o"trat to sell, the o,li(atio" of the seller to sell ,eomes $ema"$a,le o"l' upo" the happe"i"( of the suspe"sive o"$itio". 2" this ase, the suspe"sive o"$itio" is the full pa'me"t of the purhase prie ,' Chua. /uh full pa'me"t (ives rise to Chua6s ri(ht to $ema"$ the e)eutio" of the o"trat of sale. 2t is o"l' upo" the e)iste"e of the o"trat of sale that the seller ,eomes o,li(ate$ to tra"sfer the o#"ership of the thi"( sol$ to the ,u'er. Artile 1758 of the Civil Co$e $efi"es a o"trat of sale as follo#s! Art. 1758. 9' the o"trat of sale o"e of the o"trati"( parties o,li(ates himself to transfer the ownership of a"$ to $eliver a $etermi"ate thi"(, a"$ the other to pay therefor a price certain i" mo"e' or its e-uivale"t. ) ) ). :;mphasis supplie$< =rior to the e)iste"e of the o"trat of sale, the seller is "ot o,li(ate$ to tra"sfer o#"ership to the ,u'er, eve" if there is a o"trat to sell ,et#ee" them. 2t is also upo" the e)iste"e of the o"trat of sale that the ,u'er is o,li(ate$ to pa' the purhase prie to the seller. /i"e the tra"sfer of o#"ership is i" e)ha"(e for the purhase prie, these o,li(atio"s must ,e simulta"eousl' fulfille$ at the time of the e)eutio" of the o"trat of sale, i" the a,se"e of a o"trar' stipulatio". 2" a o"trat of sale, the o,li(atio"s of the seller are speifie$ i" Artile 1795 of the Civil Co$e, as follo#s! Art. 1795. The ve"$or is ,ou"$ to transfer the ownership of a"$ $eliver, as #ell as #arra"t the thi"( #hih is the o,+et of the sale. :;mphasis supplie$< The o,li(atio" of the seller is to tra"sfer to the ,u'er ownership of the thi"( sol$. 2" the sale of real propert', the seller is "ot o,li(ate$ to tra"sfer i" the "ame of the ,u'er a "e# ertifiate of title, ,ut rather to tra"sfer o#"ership of the real propert'. There is a $iffere"e ,et#ee" tra"sfer of the ertifiate of title i" the "ame of the ,u'er, a"$ tra"sfer of o#"ership to the ,u'er. The ,u'er ma' ,eome the o#"er of the real propert' eve" if the ertifiate of title is still re(istere$ i" the "ame of the seller. As ,et#ee" the seller a"$ ,u'er, o#"ership is tra"sferre$ "ot ,' the issua"e of a "e# ertifiate of title i" the "ame of the ,u'er ,ut ,' the e)eutio" of the i"strume"t of sale i" a pu,li $oume"t.
