CONVENTIONAL REDEMPTION

Conventional convention or also called as right to redeem, takes place when

the vendor reserved the right to repurchase the thing sold with the obligation to
comply with the obligation:

a. To return to the vendee:

 The price of sale
 The expenses of the contract, and any and other legitimate payments
made by reason of the sale and
 The necessary and useful expenses made on the thing sold; and

b. To comply with other stipulation which may have been agreed upon. (Arts.
1601, 1616)

LIABILITY WITH RESPECT TO FRUITS EXISTING AT THE TIME OF REDEMPTION

a. IF THERE WERE VISIBLE OR GROWING AT THE TIME OF SALE

There will be no reimbursements for or prorating of fruits at the time of

redemption if no indemnity was paid by the purchaser at the time the sale was
executed.

b. IF THERE WERE NO FRUITS AT THE TIME OF SALE

The fruits at the time of redemption will be prorated between the

redemptioner and the vendee, giving the vendee the part corresponding to the
time he possessed the land in the last year, counted from the anniversary of the
date of sale. (Art. 1617)

CONDITION OF THE PROPERTY AT THE TIME OF REDEMPTION

a. The vendor shall receive the property free from all charges constituted by the
vendee.
b. He shall respect the leases which the vendee may have executed in good
faith, and in accordance with the custom of the place where the land is
situated. (Art. 1618)

RIGHT OF VENDEE TO SUBROGATION

In sale with right to repurchase, the vendee is subrogated to the vendor’s

rights and actions. (Art. 1609)
PERIOD OF REDEMPTION

WHEN NO PERIOD IS FIXED

If the right of the redemption was agreed upon but there was no
stipulation as to the period within which the right shall be exercised, the
period of redemption shall be four (4) years from the date of contract.

WHEN PERIOD IS FIXED BY THE PARTIES

1) If the period does not exceed ten years – such as when the right to re
purchase shall be exercised within five (5) years, then the period shall be
five (5) years from the date of contract.

2) If the period exceeds ten (10) years, then the period shall be ten (10)
years from the date of contract, the stipulation as to the excess being null
and void. (Montiero vs. Salgado, 27 Phil 631)

 Where the period agreed upon is indefinite, such as when the repurchase may
be made “at any time” the repurchase shall be exercised within ten (10) years
from the date of contract, (Soriano vs. Abalos, et. al., G.R. No. L-1525. July 27,
1949)

 In case there was a civil action between the parties, the vendor may still exercise
the right to repurchase within thirty (30) days from the time final judgement was
rendered in a civil action on the basis that the contract was a true sale with the
right to repurchase. (Art. 1606)

EFFECT OF FAILURE TO EXERCISE THE RIGHT OF REPURCHASE

Ownership is consolidated in the vendee. However, in case of real

property, a judicial order, after the vendor has been duly heard, is required for
the purpose of recording the consolidation in the Registry of Property. (Art. 1607)

AGAINST WHOM RIGHT TO REPURCHASE AVAILABLE

1. The vendee retro (original vendee).

If the original vendee dies leaving several heirs, the vendor can exercise
his right to repurchase against each of them to his own share, whether the
things be undivided, or it has been partitioned among them.

However, if the inheritance has been divided and the thing sold has been
awarded to one of the heirs, the action for redemption may be instituted
against him for the whole. (Art. 1615)
 2. Every possessor whose right is delivered from the vendee a retro (original
vendee), even if no mention is made in the second contract of the right to
repurchase, provided the right has been recorded in the Registry of Deeds, or
even if the right is not registered, but the possessor has knowledge of the
existence of the right. (Art. 1608, Mortgage Law, Land Registration Law)

WHO MAY AVAIL THEMSELVES OF THE RIGHT TO REPURCHASE

1. The vendor a retro

a. A co-owner of an undivided immovable which is essentially invisible who
sells his share with a right to repurchase to a third person who
subsequently acquires the whole thereof, may be compelled by the latter
to redeem the whole property, if the former wishes to make use of the
right of redemption. (Art. 498 and 1611)
b. If several persons, jointly and in the same contract, should sell an
undivided immovable with a right of repurchase, none of them may
exercise this right for more than his respective share. (Art. 1622)

If the person who sold an immovable alone has left several heirs,
each heir may redeem only the part which he may have acquired. (Art.
1612)

The vendee may demand that the co-owners or co-heirs come to

an agreement upon the purchase of the whole thing, and if they fail to do
so, the vendee cannot be compelled to consent to a partial redemption.
(Art. 1613)

c. Each one of the co-owners of an undivided immovable who may been

sold his share separately, may independently exercise the right of
repurchase as regards his own share and the vendee cannot compel him
to redeem the whole property. (Art. 1614)

2. Creditors of the vendor

However, they cannot make use of the right of redemption against the
vendee, until after they have exhausted the property of the vendor. (Art.
1610)

LEGAL REDEMPTION
 Legal redemption is the right to be subrogated upon the same terms and conditions
stipulated in the contract, in the place of one who acquires a thing by purchase, or
dation in payment, or by any other transaction whereby the ownership is transmitted by
onerous title. (Art. 1619)

INSTANCES OF LEGAL REDEMPTION

a. Legal redemption by co-owner

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 2 or more co-owners desire to exercise the right to redemption, they may

only do so in proportion to the share they may respectively have in the thing
owned in common. (Art 1620)

b. Adjoining owner of rural land

If a piece of rural land not exceeding one hectare is alienated, the
adjoining owner shall have the right of legal redemption unless the grantee
does not own rural land.

RULE IF 2OR MORE ADJOINING OWNERS DESIRE TO EXERCISE THE RIGHT OF

REDEMPTION
1. The owner of the adjoining land of smaller area shall be preferred.
2. If both lands have the same area, the one who first requested the
redemption, shall be preferred.

WHEN RIGHT NOT AVAILABLE

If adjacent lands are separated by brooks, drains, ravines, roads and

other apparent servitudes for the benefit of the other estates. (Art. 1621)

c. Legal redemption by adjoining owner of urban land

If a small piece of urban land which was brought for speculation has been
resolved, the owner of the adjoining land has a right of redemption at a
reasonable price.

RIGHT OF PRE-EMPTION BY ADJOINING OWNER

If such of small piece of urban land is about to be resolved, the adjoining
owner shall have the right of pre-emption at a reasonable price, i.e, the
 adjoining owner shall be given the right to buy the property before it is
offered to others.

RULE IF TWO OR MORE ADJOINING CO-OWNERS WISH TO EXERCISE THE RIGHT

OF PRE-EMPTION

Preference shall be given to the owner whose intended use of the land in
question appears best justified. (Art. 1622)

 The right of redemption of co-owners excludes that of the adjoining

owners. (Art. 1623)

PERIOD OF PRE-EMPTION OR REDEMPTION

a. Pre-emption – within 30 days from written notice by prospective

vendor.
b. Redemption – within 30 days from written notice by vendor.

RECORDING OF SALE IN THE REGISTRY OF PROPERTY

The deed of sale shall not be recorded in the Registry of property, unless
accompanied by an affidavit of the vendor that he has given written notice of the sale
to all possible redemptioners.