This document summarizes several articles related to rights of redemption and pre-emption in property law. Key points include:
1) Conventional redemption allows a vendor to repurchase property by complying with stipulations in the sale contract. Legal redemption consolidates ownership in the vendee if the vendor fails to comply.
2) A contract described as a sale with right to repurchase may be presumed an equitable mortgage under certain conditions like an inadequate price or vendor remaining in possession.
3) Adjoining landowners have rights of pre-emption and redemption for rural parcels under 1 hectare and urban lands bought merely for speculation. Preference goes to the owner with the smaller adjoining land or justified intended
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Article 1600-1623
This document summarizes several articles related to rights of redemption and pre-emption in property law. Key points include:
1) Conventional redemption allows a vendor to repurchase property by complying with stipulations in the sale contract. Legal redemption consolidates ownership in the vendee if the vendor fails to comply.
2) A contract described as a sale with right to repurchase may be presumed an equitable mortgage under certain conditions like an inadequate price or vendor remaining in possession.
3) Adjoining landowners have rights of pre-emption and redemption for rural parcels under 1 hectare and urban lands bought merely for speculation. Preference goes to the owner with the smaller adjoining land or justified intended
Download as DOCX, PDF, TXT or read online on Scribd
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Article 1600. Sales are extinguished by the same causes Article 1607.
In case of real property, the consolidation
as all other obligations, by those stated in the preceding of ownership in the vendee by virtue of the failure of articles of this Title, and by conventional or legal the vendor to comply with the provisions of article 1616 redemption. (1506) shall not be recorded in the Registry of Property without a judicial order, after the vendor has been duly Article 1601. Conventional redemption shall take place heard. (n) when the vendor reserves the right to repurchase the thing sold, with the obligation to comply with the Article 1608. The vendor may bring his action against provisions of article 1616 and other stipulations which every possessor whose right is derived from the may have been agreed upon. (1507) vendee, even if in the second contract no mention should have been made of the right to repurchase, Article 1602. The contract shall be presumed to be an without prejudice to the provisions of the Mortgage equitable mortgage, in any of the following cases: Law and the Land Registration Law with respect to third (1) When the price of a sale with right to persons. (1510) repurchase is unusually inadequate; (2) When the vendor remains in possession as Article 1609. The vendee is subrogated to the vendor's lessee or otherwise; rights and actions. (1511) (3) When upon or after the expiration of the Article 1610. The creditors of the vendor cannot make right to repurchase another instrument extending the use of the right of redemption against the vendee, until period of redemption or granting a new period is after they have exhausted the property of the vendor. executed; (1512) (4) When the purchaser retains for himself a part of the purchase price; Article 1611. In a sale with a right to repurchase, the (5) When the vendor binds himself to pay the vendee of a part of an undivided immovable who taxes on the thing sold; acquires the whole thereof in the case of article 498, (6) In any other case where it may be fairly may compel the vendor to redeem the whole property, inferred that the real intention of the parties is that the if the latter wishes to make use of the right of transaction shall secure the payment of a debt or the redemption. (1513) performance of any other obligation. In any of the foregoing cases, any money, fruits, Article 1612. If several persons, jointly and in the same or other benefit to be received by the vendee as rent or contract, should sell an undivided immovable with a otherwise shall be considered as interest which shall be right of repurchase, none of them may exercise this subject to the usury laws. (n) right for more than his respective share. The same rule shall apply if the person who sold Article 1603. In case of doubt, a contract purporting to an immovable alone has left several heirs, in which case be a sale with right to repurchase shall be construed as each of the latter may only redeem the part which he an equitable mortgage. (n) may have acquired. (1514) Article 1604. The provisions of article 1602 shall also Article 1613. In the case of the preceding article, the apply to a contract purporting to be an absolute sale. vendee may demand of all the vendors or co-heirs that they come to an agreement upon the repurchase of the Article 1605. In the cases referred to in articles 1602 whole thing sold; and should they fail to do so, the and 1604, the apparent vendor may ask for the vendee cannot be compelled to consent to a partial reformation of the instrument. (n) redemption. (1515) Article 1606. The right referred to in article 1601, in the Article 1614. Each one of the co-owners of an undivided absence of an express agreement, shall last four years immovable who may have sold his share separately, from the date of the contract. may independently exercise the right of repurchase as Should there be an agreement, the period regards his own share, and the vendee cannot compel cannot exceed ten years. him to redeem the whole property. (1516) 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) Article 1615. If the vendee should leave several heirs, Article 1621. The owners of adjoining lands shall also the action for redemption cannot be brought against have the right of redemption when a piece of rural land, each of them except for his own share, whether the the area of which does not exceed one hectare, is thing be undivided, or it has been partitioned among alienated, unless the grantee does not own any rural them. land. But if the inheritance has been divided, and the This right is not applicable to adjacent lands thing sold has been awarded to one of the heirs, the which are separated by brooks, drains, ravines, roads action for redemption may be instituted against him for and other apparent servitudes for the benefit of other the whole. (1517) estates. If two or more adjoining owners desire to Article 1616. The vendor cannot avail himself of the exercise the right of redemption at the same time, the right of repurchase without returning to the vendee the owner of the adjoining land of smaller area shall be price of the sale, and in addition: preferred; and should both lands have the same area, (1) The expenses of the contract, and any other the one who first requested the redemption. (1523a) legitimate payments made by reason of the sale; (2) The necessary and useful expenses made on Article 1622. Whenever a piece of urban land which is the thing sold. (1518) so small and so situated that a major portion thereof cannot be used for any practical purpose within a Article 1617. If at the time of the execution of the sale reasonable time, having been bought merely for there should be on the land, visible or growing fruits, speculation, is about to be re-sold, the owner of any there shall be no reimbursement for or prorating of adjoining land has a right of pre-emption at a those existing at the time of redemption, if no reasonable price. indemnity was paid by the purchaser when the sale was If the re-sale has been perfected, the owner of executed. the adjoining land shall have a right of redemption, also Should there have been no fruits at the time of at a reasonable price. the sale and some exist at the time of redemption, they When two or more owners of adjoining lands shall be prorated between the redemptioner and the wish to exercise the right of pre-emption or vendee, giving the latter the part corresponding to the redemption, the owner whose intended use of the land time he possessed the land in the last year, counted in question appears best justified shall be preferred. (n) from the anniversary of the date of the sale. (1519a) Article 1623. The right of legal pre-emption or Article 1618. The vendor who recovers the thing sold redemption shall not be exercised except within thirty shall receive it free from all charges or mortgages days from the notice in writing by the prospective constituted by the vendee, but he shall respect the vendor, or by the vendor, as the case may be. The deed leases which the latter may have executed in good faith, of sale shall not be recorded in the Registry of Property, and in accordance with the custom of the place where unless accompanied by an affidavit of the vendor that the land is situated. (1520) he has given written notice thereof to all possible Article 1619. Legal redemption is the right to be redemptioners. subrogated, upon the same terms and conditions The right of redemption of co-owners excludes stipulated in the contract, in the place of one who that of adjoining owners. (1524a) acquires a thing by purchase or dation in payment, or by any other transaction whereby ownership is transmitted by onerous title. (1521a)
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. If the price of the alienation is grossly excessive, the redemptioner shall pay only a reasonable one. 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)