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XI. EXTINGUISHMENT OF SALE - Coggle Diagram
XI. EXTINGUISHMENT OF SALE
A. IN GENERAL
B. CAUSES OF EXTINGUISHMENT
C. CONVENTIONAL REDEMPTION
D. LEGAL REDEMPTION
E. REDEMPTION/PRE-EMPTION UNDER SPECIAL LAWS
LAND ACQUIRED UNDER FREE PATENT OR HOMESTEAD
(CA 141, Sec. 119)
EXTRA-JUDICIAL FORECLOSURE OF MORTGAGE
(Act 3135, Sec. 6)
AGRICULTURAL LAND
(RA 3844, Sec. 12)
AGRI-LESSEE-UNKNOWNING HAS ROR
(2 YRS-REG. SALE)
RA 3844, Section 12. Lessee's Right of Redemption - In case the landholding is sold to a third person without the knowledge of the agricultural lessee,
the latter shall have the right to redeem the same at a reasonable price and consideration:
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EJ SALE -> ROR
1 YEAR FROM SALE BY:
[DSJL]
DEBTOR
SUCCESSORS-IN-INTEREST
JUDICIAL CREDITOR
LIEN-SUBSEQUENT PERSONS
ACT. 3135 Sec. 6. In all cases in which an extrajudicial sale is made under the special power hereinbefore referred to, the debtor, his successors in interest or any judicial creditor or judgment creditor of said debtor, or any person having a lien on the property subsequent to the mortgage or deed of trust under which the property is sold, may redeem the same at any time within the term of one year from and after the date of the sale;
464-466 of CCP
and such redemption shall be governed by the provisions of sections four hundred and sixty-four to four hundred and sixty-six, inclusive, of the Code of Civil Procedure, in so far as these are not inconsistent with the provisions of this Act.
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Isn't this from the date of the certificate of sale?
REDEMPTION PERIOD
[HEA]
5 YRS-CONVEYANCE
a.
HOMESTEAD
1 YR-SALE
a.
EJ-SALE
2 YRS-REGISTRATION
a.
AGRI-LESSEE
FREE PATENT/HOMESTEAD -> ROR
5 YEARS FROM CONVEYANCE
BY:
[AWL]
APPLICANT
WIDOW
LEGAL HEIRS
CA 141, SECTION 119. Every conveyance of land acquired under the
free patent or homestead provisions,
when proper,
shall be subject to
repurchase by the applicant, his widow, or legal heirs, within a period of five years from the date of the conveyance.
CONCEPT
WHEN APPLICABLE
PERIOD TO REDEEM
(1623)
EXERCISE OF RIGHT TO REDEEM
30D WITHIN-WRITTEN! NOTICE
LEGAL PRE-EMPTION/REDEMPTION
Article 1623. The right of legal pre-emption or redemption shall not be exercised except within thirty days from the notice in writing by the prospective vendor, or by the vendor, as the case may be.
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What is "Pre-emption"?
a.
CO-OWNERS
(1620)
b.
ADJOINING LAND-OWNERS OF
RURAL LAND
(1621)
c.
ADJOINING LAND-OWNERS OF
URBAN LAND
(1622)
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ADJ-RURAL: 1 HA MAX
Article 1621. 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,...
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WHOLE SOLD TO 3RD -> ONE MAY REDEEM
Article 1620. 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.
MULTI-REDEEM -> SHARE ONLY
Should two or more co-owners desire to exercise the right of redemption, they may only do so in proportion to the share they may respectively have in the thing owned in common. (1522a)
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What if in 3rd person in good faith?
EXCESSIVE -> REASONABLE ONLY
If the price of the alienation is grossly excessive, the redemptioner shall pay only a reasonable one.
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CONCEPT OF CONVENTIONAL REDEMPTION
DISTINGUISHED FROM EQUITABLE MORTGAGE
(1602-1604; 2088)
DISTINGUISHED FROM OPTION TO BUY
EXERCISE OF RIGHT TO REDEEM
a.
WHO EXERCISES RIGHT
LAST RESORT REDEMPTION
(CREDITOR -> VENDOR -> VENDEE)
Article 1610. The creditors of the vendor cannot make use of the right of redemption against the vendee, until after they have exhausted the property of the vendor. (1512)
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b.
FROM WHOM TO REDEEM
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EFFECT OF REDEMPTION & NON-REDEMPTION
(1617, 1618, 1607, 1609, 1611)
a. CONSOLIDATION OF OWNERSHIP
(Art. 1607)
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CAN BE INDEPENDENT
CAN BE SUBSEQUENT
CAN BE 10-YEARS PAST
EQUITABLE MORTGAGE IF:
(UPE-PTI-DP)
ARTICLE 1602. The contract shall be presumed to be an equitable mortgage, in any of the following cases:
UNUSUALLY INADEQUATE PRICE
(1) When the price of a sale with right to repurchase is unusually inadequate;
POSSESSION RETAINED
(2) When the vendor remains in possession as lessee or otherwise;
EXTENSION OF REPURCHASE
(3) When upon or after the expiration of the right to repurchase another instrument extending the period of redemption or granting a new period is executed;
PRICE RETAINED
(4) When the purchaser retains for himself a part of the purchase price;
TAXES BY S
(5) When the vendor binds himself to pay the taxes on the thing sold;
INTENTION
(6) In any other case where it may be fairly inferred that the real intention of the parties is that the transaction shall secure the payment of a debt or the performance of any other obligation.
DOUBTFUL REPURCHASE
Article 1603. In case of doubt, a contract purporting to be a sale with right to repurchase shall be construed as an equitable mortgage. (n)
PUPORTED SALE
Article 1604. The provisions of article 1602 shall also apply to a contract purporting to be an absolute sale. (n)
PACTUM COMMISSORIUM
Article 2088. The creditor cannot appropriate the things given by way of pledge or mortgage, or dispose of them. Any stipulation to the contrary is null and void. (1859a)
CONSIDERED INTEREST or RENT
MONEY
FRUITS
BENEFITS
In any of the foregoing cases, any money, fruits, or other benefit to be received by the vendee as rent or otherwise shall be considered as interest which shall be subject to the usury laws. (n)
DENOMINATED SALE
INTENDED SECURITY
a.
NO TRANSFER OF OWNERSHIP
(a) the parties entered into a contract denominated as a contract of sale; and
(b) the intention was to secure an existing debt by way of mortgage. The decisive factor is the intention of the parties.
REGISTERED OR NOT
contracts are presumed to be equitable mortgages under Art 1602 of the New Civil Code, whether registered or not, there being no third parties involved.
[Tan v/ Valdehueza]
"CONVENTIONAL REDEMPTION"
VENDOR RESERVES:
STIPULATED RIGHT TO REPURCHASE
OBLIGATIONS:
a.
STIPULATED
b.
NCC 1616
Article 1601. Conventional redemption shall take place when the vendor reserves the right to repurchase the thing sold, with the obligation to comply with the provisions of article 1616 and other stipulations which may have been agreed upon. (1507)
VENDOR MUST PAY:
SALE'S
a.
PRICE
b.
EXPENSES
c.
LEGITIMATE PAYMENTS
THING'S
a.
NECESSARY EXPENSES
b.
USEFUL EXPENSES
Article 1616. The vendor cannot avail himself of the right of repurchase without returning to the vendee the price of the sale, and in addition:
(1) The expenses of the contract, and any other legitimate payments made by reason of the sale;
(2) The necessary and useful expenses made on the thing sold. (1518)
PRESCRIPTION
4Y: FROM CONTRACT: NOT EXPRESS
Article 1606. The right referred to in article 1601, in the absence of an express agreement, shall last four years from the date of the contract.
10Y: EXPRESS
Should there be an agreement, the period cannot exceed ten years.
30D FROM FJ: CIVIL + TRUE SALE-ROR
However, the vendor may still exercise the right to repurchase within thirty days from the time final judgment was rendered in a civil action on the basis that the contract was a true sale with right to repurchase. (1508a)
PRESCRIPTION
4YRS - IMPLIED
10 YRS MAX - EXPRESS
30 D-FJ = CIVIL ACTION
a.
TRUE SALE-ROR
The term "Redemption" is interchanged with "repurchase" here noh?
Thus, "Redemption" here doesn't necessarily pertain to a mortgagor's redemption.
Is redemption an
umbrella
term or a synonym?
SIMULTANEOUS TO SALE
The right of repurchase is a right reserved by the vendor in the same instrument of sale as one of the stipulations of the contract.
SUBSEQUENT TO SALE
EVEN IF SAME DAY [TORRES v. CA]
(OPTION TO BUY)
Once the instrument of absolute sale is executed, the vendor can no longer reserve the right to repurchase in a subsequent instrument. Any right thereafter granted the vendor by the vendee cannot be a right of repurchase but some other right like an option to buy.
SALES ARE EXTINGUISHED BY:
[PL-CCC-N]
Article 1231. Obligations are extinguished:
PAYMENT/PERFORMANCE
(1) By payment or performance;
LOSS
(2) By the loss of the thing due;
CONDONATION/REMISSION
(3) By the condonation or remission of the debt;
CONFUSION/MERGER
(4) By the confusion or merger of the rights of creditor and debtor;
COMPENSATION
(5) By compensation;
NOVATION
(6) By novation.
REDEMPTION
a.
CONVENTIONAL
b.
LEGAL
NCC 1600. Sales are extinguished by the same causes as all other obligations, by those stated in the preceding articles of this Title, and by conventional or legal redemption. (1506)
By "conventional" redemption, EJ Foreclosure ba?
By "legal" redemption, J Foreclosure ba?
CANCEL MOVABLE- INSTALLMENTS
RESALE BY UNPAID SELLER
RESCISSION BY UNPAID SELLER
RESCISSION BY:
a.
PARTIAL EVICTION
b.
HIDDEN DEFECTS
c.
REDHIBITORY DEFECTS
d.
LAND'S NON-APPRENT ENCUMBRANCE
e.
LAND'S LACK OF AREA OR QUALITY