RULE 63: DECLARATORY RELIEF AND OTHER SIMILAR REMEDIES

JURISDICTION OVER THE

NOTES ON REMEDIES UNDER RULE
SPECIAL CIVIL ACTIONS
63
UNDER RULE 63
1. DECLARATORY RELIEF 1. DECLARATORY RELIEF — RTC
--> DEFINITION: an action by any --> ACTION INCAPABLE OF
person interested in a deed, will PECUNIARY ESTIMATION (S1,
contract, or other written instrument, R63)
executive order or resolution, to --> What if a case is brought as
determine any question of a petition for certiorari to the
construction or validity arising from SC, but it really seeks a
the instrument, executive order or declaration on the
regulation, or statute, and for a unconstitutionality and
declaration of rights and duties illegality of the question
thereunder. government issuance?
--> ONLY ISSUE: Question of --> It should still be treated as
construction or validity of one for declaratory relief,
provisions in an instrument or statute. not certiorari under R65
GR: For DR to be justified, there must (which only applies against
be no other adequate relief or acts which are judicial and
remedy available under the quasi-judicial in nature),
circumstances. over which the SC only has
--> PURPOSE: (seek judicial appellate, not original
interpretation or authoritative statement jurisdiction. The SC has no
from the court) original jurisdiction over a
a. Determine any question of DR petition.
construction or validity arising from --> BUT — If the issue
the subject of action involves question of
b. Seek for a declaration of the constitutionality or has
petitioner’s rights and duties far reaching implications
therein and raises questions that
--> NOT TO: should be resolved for
a. Obtain affirmative reliefs such as public good,
injunction, damages, or any other jurisprudence has
relief beyond the purpose of the recognized that it may
petition be brought directly to
b. To settle issues arising from a SC; and be treated as
breach of the instrument or one of prohibition or
government issuance mandamus than DR (SC
--> DR Petition presupposes that there does NOT have original
has been no actual breach or jurisdiction over DR only
violation of the instruments involved appellate).
or of the rights arising thereunder
since the purpose of DR petition is to
secure an authoritative statement of
the rights & obligations of the parties
under a statute, deed, or contract for
their guidance in the enforcement
thereof, or compliance therewith. DR
petition gives a practical remedy for
ending controversies that have not
reached the state where another relief
is immediately available; and supplies
the need for a form of action that will
set controversies at rest before they
lead to a repudiation of obligations,
an invasion of rights, and a
commission of wrongs.

2. OTHER SIMILAR RELIEFS/ACTIONS

a. REFORMATION OF
a. REFORMATION OF INSTRUMENT INSTRUMENT — RTC
(ART. 1359, NCC) --> ACTION INCAPABLE OF
--> this is an action brought to reform PECUNIARY ESTIMATION
the instrument which embodies the --> RIANO: It is submitted that an
contract, and not the contract itself. action for reformation of an
 RULE 63: DECLARATORY RELIEF AND OTHER SIMILAR REMEDIES
The action is brought so that the instrument should be treated as
intention of the parties may be an action incapable of pecuniary
expressed in the instrument. estimation, the issue therein
--> The instrument is reformed because being on other than for recovery
despite the meeting of the minds of of money.
the parties as to the object and cause
of the contract, the instrument which
is supposed to embody the
agreement of the parties does not
reflect their true agreement by reason
of mistake, fraud, inequitable
conduct, or accident.

b. QUIETING OF TITLE (ART. 476- b. QUIETING OF TITLE —

481, NCC) MTC/RTC
--> This is brought to remove a cloud --> DEPENDING ON THE
on title to real property or any ASSESSED VALUE OF REAL
interest therein or to prevent a PROPERTY
cloud from being cast upon such --> includes reconveyance or
title or any interest therein. The cancellation of title to real prop
cloud is caused by any instrument, --> An action for quieting of title
record, claim encumbrance or is a real action since it involves
proceeding which appears to be title to, possession or any
valid or effective. However, in truth interest in real property. Hence,
and in fact, the same is invalid, jurisdiction over such actions
ineffective, voidable or shall depend upon the
unenforceable and may be assessed value of the real
prejudicial to the title to real property involved.
property. --> SALVADOR: jurisdiction over
actions of quieting of title falls
under the RTC, as it is also akin
to an action for DR since the
plaintiff actually seeks for a
declaration of his rights.

c. CONSOLIDATION OF c. CONSOLIDATION OF
OWNERSHIP (ART. 1359, NCC) OWNERSHIP — RTC
--> This is brought to confirm --> ACTION INCAPABLE OF
ownership and title to real property PECUNIARY ESTIMATION
for purposes of registration upon --> RIANO: RTC. The assessed
the expiration of the redemption value of the real property
period (legal or conventional) and should NOT be considered in
the seller has not exercised his right the determination of
to redeem. jurisdiction because the action
does not involve recovery of
title to, or ownership of real
property. As earlier held in Cruz
vs Leis, the failure by the
vendor to redeem the property
within the stipulated period,
vests upon the vendee
absolute title and ownership
over the property sold. The
action for consolidation of
ownership is merely to obtain a
judicial order to effect the
registration of the consolidated
ownership in the Registry of
Property, not to caure
ownership or title over the
property. Hence, it is not a real
action.
 RULE 63: DECLARATORY RELIEF AND OTHER SIMILAR REMEDIES
VENUE OF THE SPECIAL CIVIL ACTIONS UNDER RULE 63
-->ordinary rules on venue under Rule 4 (depending if real or personal
action)
REAL ACTIONS PERSONAL ACTIONS
These are actions affecting
— All actions which are not real
1. Title to real property actions
DEFINIT
2. Possession of real
ION
property
3. Any interest in real
property
In either any of the following, at
Commenced & tried in the the choice of the plaintiff —
proper court which has 1. Place of residence of the
jurisdiction over the plaintiff or any of the principal
area wherein the real plaintiffs
property involved, or a 2. Place of residence of the
VENUE
portion thereof, is defendant or any of the
situated principal defendants
3. In case of a non-resident
defendant, where he may be
found, at the election of
the plaintiff

REQUISITES OF AN ACTION FOR DECLARATORY RELIEF

REQUISITES OF AN ACTION FOR DECLARATORY RELIEF (CITY OF
Section 1. Who VS
LAPU-LAPU mayPEZA,
file 2014)
petition. — Any person interested under a deed,
will, contract or other written instrument, or whose rights are
1. The subject-matter
affected of executive
by a statute, the controversy
order must either be aordinance,
or regulation, — or any
other governmental regulation may, before breach or violation thereof
bring an action in the appropriate Regional Trial Court to determine
[Link]
Instrument —
of construction b. Government
or validity arising,issuance
and for a—declaration
i. Deed
of his rights or duties, thereunder. i. Statute
(Bar Matter No. 803, 17 February
1998) XXXXXX
Sectionii. Will
6. Conversion into ordinary ii. Executive
action. Order
— If or regulation
before the final
iii. Contract
termination of the case, a breach iii.
orOrdinance
violation of an instrument or a
statute, executive order or regulation, ordinance, or any other
iv.
governmental Other written
regulation should [Link],
Other government regulation
the action may thereupon be
convertedinstrument
into an ordinary action, and the parties shall be allowed to
2. The terms or validity of the instrument or government issuance are
CIVIL CODE
doubtful
Article 1607.& In
require
case judicial
of realconstruction
property, the consolidation of ownership in
theThere
3. vendee by virtue
must of the
have been failure of the instrument
vendor to comply with the
provisions of article 1616noshall
breach
notofbethe or Registry
recorded in the issuance in
of
questionwithout a judicial order, after the vendor has been duly
Property
4. There must be an actual justiciable controversy or the “ripening seeds”
of one between persons whose interests are adverse
5. The issue invoked must be ripe for judicial determination
6. Adequate relief is NOT available through other means or forms of action
or proceeding.
REQUISITES OF AN ACTION FOR DECLARATORY RELIEF (EXPOUNDED)
1. THE SUBJECT MATTER OF THE CONTROVERSY MUST EITHER BE: -->
EXCLUSIVE.
a. Instrument — b. Government issuance —
i. Deed i. Statute EXPRESSIO UNIUS
ii. Will ii. Executive Order or regulation EST EXCLUSIO
iii. Contract iii. Ordinance ALTERIUS
iv. Other written instrument iv. Other government regulation
--> express mention of
--> improper in the following cases as it does not involve an instrument or
government issuance: one thing excludes all
a. To ask the court to declare filiation and hereditary rights.
b. To seek judicial declaration of citizenship to correct a previous unilateral
registration by petitioner as an alien.
c. For purposes of seeking enlightenment as to the true import of a judgment or
assail it
--> WHY? ROC already provided for ways by which an ambiguous or
doubtful decision may be corrected or clarified --> Motion For Clarificatory
 RULE 63: DECLARATORY RELIEF AND OTHER SIMILAR REMEDIES
Judgment, MNT/MR, appeal, Relief from Judgment, Annulment of judgment
2. ISSUE: QUESTION OF VALIDITY --> THE TERMS OR VALIDITY OF THE
INSTRUMENT OR GOVERNMENT ISSUANCE ARE DOUBTFUL AND
REQUIRE JUDICIAL CONSTRUCTION
--> Where the contract or statute is clear in its terms and there is no doubt as
to its meaning and validity, there is no need for a judicial construction.
3. THERE MUST HAVE BEEN NO BREACH OF THE INSTRUMENT OR
ISSUANCE IN QUESTION
--> The petition for decelerator relief is filled before there occurs any breach of
violation of the instrument or government issuance. It will not prosper when
brought after a contract or a statute has already been breached or violated. If
there has already been a breach, the appropriate ordinary civil action, not
declaratory relief, should be filed.
--> What if before the final termination of the case, a breach or violation
of an instrument or a statute, executive order or regulation,
ordinance, or any other governmental regulation should take place?
--> The action may thereupon be converted into an ordinary action, and
the parties shall be allowed to file such pleadings as may be necessary or
proper. In this case, the action should not be dismissed, but instead, should
be converted into an ordinary action.
--> BUT — Although Sec. 6 of Rule 63 may allow such course of action, the
party desiring the conversion needs to argue the point and specify the
ordinary action designed. The same must also be raised in the trial court and
not for the first time on appeal.
4. THERE MUST BE AN ACTUAL JUSTICIABLE CONTROVERSY OR THE
“RIPENING SEEDS” OF ONE BETWEEN PERSONS WHOSE
INTERESTS ARE ADVERSES
--> The traditional concept of a cause of action in ordinary civil actions does
NOT apply to a declaratory relief where no specific right of the plaintiff has
yet been violated because the action is brought before a breach of the
instrument or law occurs.
--> JUSTICIABLE CONTROVERSY: an existing case or controversy that is
appropriate or ripe for judicial determination, not one that is conjectural
or merely anticipatory.
--> a definite and concrete dispute touching on the legal relations of the
parties having adverse interests, which may be resolved by the court
thru application of a law
--> RIPENING SEEDS --> it is meant, not that sufficient accrued facts may
be dispensed with, but that a dispute may be tried at its inception before it
has accumulated the asperity, distemper, animosity, passion, and violence
of a full blown battle that looms ahead. The concept describes a state of
facts indicating imminent and inevitable litigation provided that the issue
is not settled and stabilized by tranquilizing declaration. (Republic vs
Roque 2013)
--> REQUISITES: a. There is a justiciable controversy
b. The controversy is between persons whose interests are
adverse
c. The party seeking relief has a legal interest in the
controversy

Southern Hemisphere Engagement Network Inc. vs Anti-Terrorism

Council
Courts do not sit to adjudicate mere academic questions to satisfy scholarly
interest, however intellectually challenging. The controversy must be
justiciable, definite and concrete, touching on the legal relations of the
parties having adverse legal interests. In other words, the pleadings must
show an active antagonistic assertion of a legal right, on the one hand, and a
denial thereof on the other hand, that it, it must concern a real and not
merely a theoretical question or issue.
--> NOTE: Jurisprudence seems to apply the test of legal standing AND the
“direct injury” test to actions for declaratory relief.
5. THE ISSUE INVOKED MUST BE RIPE FOR JUDICIAL DETERMINATION
--> A question is ripe for adjudication when the act being challenged has
had a direct adverse effect on the individual challenging it
 RULE 63: DECLARATORY RELIEF AND OTHER SIMILAR REMEDIES
6. ADEQUATE RELIEF IS NOT AVAILABLE THROUGH OTHER MEANS OR
FORMS OF ACTION OR PROCEEDING
--> Thus, for the purpose of seeking clarification as to the true import of a court
judgment. A court decision cannot be interpreted as included within the
purview of the words “other written instrument” for the simple reason that
the Rules of Court already provide for ways by which can ambiguous or
doubtful decision may be corrected within need of resorting to a petition for
declaratory relief. The remedy is to file a motion for clarificatory judgment.
ISSUES AND RELIEFS ALLOWED IN AN ACTION FOR DECLARATORY
RELIEF
--> ISSUE: The construction or validity of the provisions in an
instrument or government issuance
--> RELIEF: ONLY the declaration of P’s rights & duties under such
instrument or government issuance
--> WHAT RELIEFS CANNOT BE GRANTED?
1. Injunction, damages, or any other relief beyond the purpose of the
petition
2. Third party complaint — the relief sought in this kind of pleading is
contribution, indemnity, subrogation to other relief from the third party
defendant in respect of the claim of the plaintiff against him.
Accordingly, this relief cannot be granted because, in a declaratory
relief, the court is merely interpreting the terms of the contract.
EXCEPTIONS: (which may be granted)
1. Compulsory counterclaims may be granted
--> Nothing in the nature of an action for DR proscribes the filing of a
compulsory counterclaim.
2. Affirmative reliefs may be granted by the trial court if such was
warranted by the evidence presented, not challenged by the
defendant and he is estopped from doing so.
*** There is NO executory process in actions for declaratory relief
--> RIANO: Since the objective of the petition is merely an interpretation of a
deed or a contract or for a definitive pronouncement of rights under a
particular law, rule or order, there is nothing to execute in the judgment of the
court the way judgments in ordinary civil actions are executed. This is because
the judgment in a declaratory relief is confined either to an interpretation of a
deed or a declaration whether or not the petitioner has rights under the law. As
a general principle, therefore, the judgment in a declaratory relief is said to
stand by itself and no executory process follows as of course. It is unlike the
judgment in ordinary civil actions which is coercive in character and
enforceable by execution.
--> BUT — This is not an absolute rule. Jurisprudence has made certain
exceptions.
WHEN COURT MAY REFUSE A JUDICIAL DECLARATION
1. DECLARATORY
Section 5. RELIEF
Court — the court motu proprio OR upon motion,
action
may refuse to exercise
discretionary. — Exceptthe in power to declare rights and to construe
actions falling
instruments in any ofunderwhere
case the
second paragraph section either:
a.1 Aofdecision would
this Rule, thenotcourt,
terminate the uncertainty or controversy which
motu
gaveproprio
rise to or
theupon
actionmotion,
may refuse to exercise the
[Link]
Where tothe declaration
declare rightsorand
construction is not necessary and proper under
totheconstrue instruments in
circumstances
any case where a decision
--> The court
would not is given the discretion
terminate the to act or not to act on the petition. It
may, therefore,
uncertainty choose not to construe the instrument or refrain from
or controversy
which gave rise to the
decelerating
action, the case
or in any rights of the petitioner under the deed or law. The
where
therefusaldeclaration
of the court toordeclare a right or construe an instrument
construction is not
may be considered
necessary and properasunderthe functional equivalent of the dismissal of
thethecircumstances.
petition. (5a, R64)
2. OTHER SIMILAR RELIEFS — court has NO discretion to refuse to act

PARTIES TO AN ACTION FOR DECLARATORY RELIEF

PETITIONER: WHO MAY
Section 2. Parties. FILE
— All AN ACTION
persons FOR
who have orDECLARATORY RELIEF
claim any interest which
1. By “any
would person interested”
be affected in the instrument
by the declaration shall be made parties; and no
declaration
2. “any personshall, except
whose as otherwise
rights not
areparties provided
affected” in
byaction. these Rules,
the government
prejudice the rights of persons to the (2a, R64)
issuance
Section 3. Notice on Solicitor General. — In any action which involves
theMeaning
--> validity of a of
statute, executive order orinstrument
regulation,
or or any other
governmentalrights P mustthe
regulation, be affected
SolicitorbyGeneral
the shall be government
notified by
the party assailing the same and shall be entitled to be heard upon
such question. (3a, R64)
Section 4. Local government ordinances. — In any action involving the
validity of a local government ordinance, the corresponding prosecutor
or attorney of the local governmental unit involved shall be similarly
notified and entitled to be heard. If such ordinance is alleged to be
unconstitutional, the Solicitor General shall also be notified and
 RULE 63: DECLARATORY RELIEF AND OTHER SIMILAR REMEDIES
issuance being assailed; the parties to the instrument, their heirs &
assignees (1311, NCC)
--> Remember that there must be an actual justiciable controversy or the
“ripening seeds” of one between persons whose interests are adverse
--> notified by the
OTHER PARTIES: Who should be made parties to an Action for
party assailing the
Declaratory Relief?
same
1. In general — All persons who have or claim any interest which would be
--> entitled to be
affected by the declaration shall be made parties (S2, R63)
heard
2. If what is involved is a national government issuance — Solicitor
General (S3, R63)
3. If what is involved is a local government issuance — corresponding
prosecutor or attorney of the LGU involved (S4, R63)
4. If what is involved is the constitutionality of a local government
issuance — the corresponding prosecutor or attorney of the LGU involved
AND the Solicitor General (S4, R63)
What is the parties affected by the declaration are NOT made
parties to the action?
--> The declaration will NOT prejudice the rights of persons not parties to the
action.
EXCEPT — as otherwise provided in the Rules
ACTION FOR REFORMATION OF INSTRUMENT
a. REFORMATION OF INSTRUMENT (ART. 1359, NCC)
--> This
CIVIL is an action brought to reform the instrument which embodies the
CODE
contract,
Article and When,
1359. not the contract
there havingitself.
beenThe a action
meetingis of
brought so that
the minds of the
the
parties to a contract, their true intention is not expressed in the
intention of the parties may be expressed in the instrument.
instrument purporting to embody the agreement, by reason of mistake,
-->fraud,
The instrument
inequitableis reformed
conductbecause despiteone
or accident, the of
meeting of the minds
the parties of the
may ask for
the reformation
parties of the and
as to the object instrument
cause of to thethe end that
contract, the such true intention
instrument which is
may be expressed.
supposed
If mistake, to embody
fraud, the agreementconduct,
inequitable of the parties does not reflect
or accident their truea
has prevented
agreement
meeting by ofreason of mistake,
the minds fraud,parties,
of the inequitable conduct,
the properor remedy
accident.
is not
reformation
--> where of the
the consent of instrument
a party to but annulment
a contract has of theprocured
been [Link] fraud,
Article 1360. The principles of the general law on the reformation of
inequitable
instrumentsconduct or accident,
are hereby adoptedwhat is defective
insofar is the
as they arecontract
not initself and
conflict
withthe
not theinstrument
provisions--> of due
thistoCode.
vitiation of consent, the right remedy is an
Article
action 1361.
for When a of
annulment mutual mistake
contract, of the parties causes the failure of
not reformation.
the instrument to disclose their real agreement, said instrument may
be reformed.
Article 1362. If one ACTIONparty FOR QUIETING
was mistaken and OF theTITLE
other acted fraudulently
or inequitably in such a way that the instrument does not show their
true intention, the former may ask for the reformation of the
NATURE
CIVIL CODEOF AN ACTION FOR QUIETING OF TITLE (ART. 476-481, NCC)
instrument.
Article
--> 476. Whenever
proceeding quasione there
in rem -->is ana mistaken
cloud onand
individul title the to areal property ortheany
Article
interest
that
1363.
the of
When
therein,
instrument
party
by
did
was
reason
not state oftheirany srealnamed
instrument, defendant
other
agreement,
knew or and
record,
but
believed
claim,
concealed
purpose
encumbrance
that the
fact truth or
from theproceeding
proceeding
former, is to
which subject
is
the instrument his interests
apparently to the obligation
be [Link], but
valid or effective or
is burdening
loan in theand in fact
property invalid, may ineffective, or
Article 1364. When
unenforceable, andthrough
may be the ignorance,
prejudicial to lack
said of skill,
title, an negligence
action maytheor
be
bad
--> faithtoon
Actions
brought quasithe in
remove partrem
such of the with
deal
cloud person
or tothe drafting
status,
quiet the the instrument
ownership
title. or or of
liability of a
clerk or typist, the instrument does not express the true intention of
Antheaction
particularmay property
parties, alsocourts
be brought
but whichto prevent
are
that intendeda instrument
cloudto from bebeing
operate oncasttheseupon
title to realthe property or mayany order
interest the
therein. reformed.
questions
Article
Article 1365.
477. only
If two
The as parties
between
plaintiff mustthehave
agree particular
the parties
uponlegal mortgage
or toorthe
equitable proceedings
pledge
title ofto,realor
or personal
interest property, but the instrument states that the property is
sold not in
andabsolutely the orreal
to ascertain orproperty
with cuta off
rightthewhich
rights
of isof the subject
all possible
repurchase, matter
claimants.
reformation ofThe
of the
the
action. He is
instrument need not be in possession of said property.
judgment
Article 478. is
proper.
binding
There mayonlyalso upon the
an parties
bereformation
action in who
tothe joined title
quiet in the action.
or remove a
Article 1366. There shall be contract,
--> This
cloud
(1) is brought
therefrom
Simple to
donations remove
when the
inter anocloud
vivos on title to
instrument
wherein no real orfollowing
property
condition is
cases:
otherorobligation
any
imposed; interest has
been extinguished or has terminated, or has been barred by extinctive
therein
(2) or to prevent a cloud from being cast upon such title or any
Wills;
prescription.
(3) When
interest
Article [Link]
therein. realThe agreement
cloud isis void. by
caused to any instrument, record, claimhe
Article
may 1367.
have Whenplaintiff
received onefromof the must
the return
parties
latter, orhas the
brought
reimburse
defendant all
an action benefits
to enforce
encumbrance
the
may instrument,
have redounded orheproceeding
cannot which appears
to the subsequently
plaintiff's ask
benefit. fortoits behim for expenses
valid or effective.
reformation. that
Article
However,
Article 1368.
[Link] Reformation
truth
The and in
principles mayofbe
fact, the ordered
the same is
general at the
invalid,
law instance
on of either
ineffective,
the quieting voidable
of party
or
title
or
arehis successors
hereby adopted in interest,
insofar asparty,if are
they the not mistake was mutual;
in conflict otherwise,
with this Code.
unenforceable
upon petition
Article 1369.
481. The
and
of may
the be
injured prejudicial to
or the
his title
heirs to real
and property.
assigns.
Article
--> Must the
cloud The procedure
plaintiff
therefrom procedure
be
shall in
for
forthe thequieting
bepossession reformation
of the
of title
real
or the removal
of property?
instrument shall ofbea
governed
Supreme by rules
Court shallof promulgated.
court togoverned by
be promulgated suchby rules of court
the Supreme Court. as the
--> NO. The plaintiff need not be in possession of the real property before
he may bring the action as long as he can show that he has a legal or
equitable title to the property which is the subject matter of the action.
(Art. 477, NCC)
REQUISITES OF AN ACTION FOR QUIETING OF TITLE
1. Plaintiff has a legal or equitable title or interest in the real property
subject of the action
2. The deed, claim, encumbrance, or proceeding claimed to be casting
cloud in his title must be show to be, in fact, invalid or inoperative,
despite its prima facie appearance of validity or legal efficacy.
ACTION FOR CONSOLIDATION OF OWNERSHIP
c. CONSOLIDATION
CIVIL CODE OF OWNERSHIP (ART. 1359, NCC)
Article 1607. In case of real property, the consolidation of ownership
in the vendee by virtue of the failure of the vendor to comply with
the provisions of Article 1616 shall not be recorded in the Registry
of Property without a judicial order, after the vendor has been duly
heard. (n)
 RULE 63: DECLARATORY RELIEF AND OTHER SIMILAR REMEDIES
--> This is brought to confirm ownership and title to real property for
purposes of registration upon the expiration of the redemption period
(legal or conventional) and the seller has not exercised his right to
redeem.
--> Under the law, a contract of sale may be extinguished either by —
1. Legal redemption (retracto legal) — a statutorily mandated
redemption of property previously sold.
EXAMPLES:
a. A co-owner of a thing may exercise the right of redemption in case
the shares of all the other co-owners or of any of them, are sold to a
third person. (1620, NCC)
b. The owners of adjoining lands shall also have the right of
redemption when a piece of rural land, the area of which does not
exceed one hectare, is alienated. (1621, NCC)
2. Conventional redemption (pacto de retro) — takes place when the
vendor reserves the right to repurchase the thing sold. The period of
redemption is fixed by the parties but cannot exceed 10 years from the
date of the contract. In the absence of an express agreement, the
redemption period shall be 4 years from the date of the contract.
(1606, NCC)
--> Applicability of Consolidation — where redemption is not made
within the redemption period and the subject-matter of the sale is real
property, the consolidation of ownership in the buyer is proper, but it
shall not be recorded in the Registry of Property without a judicial
order, after the seller has been duly heard.
--> Purpose of Consolidation — the action brought to consolidate
ownership is not for the purpose of consolidating ownership of the
property in the person of the buyer, but for the registration of the
property. The lapse of the redemption period without the seller
exercising his right of redemption consolidates ownership of title upon
the person of the buyer by operation of law. Art. 1607 requires the
filing of an action for consolidation of ownership because the law
precludes the registration of the consolidated title without a judicial
order.
--> Art. 1607 is intended to minimize the evils which the pacto de retro sale
has caused in the hands of usurers. A judicial order is necessary in
order to determine the true nature of the transaction and to prevent
the interposition of buyers in good faith while the determination is
being made. However, notwithstanding Article 1607, the recording in
the Registry of Property of the consolidation of ownership of the
vendee is not a condition sine qua non to the transfer of ownership.