SALCLAW WEEK 8

SALE BY NON-OWNER

At Perfection Stage – Valid sale exists to bind both seller and buyer, even if at the time of perfection
the seller was not the owner of the subject matter since it does not exist yet. It is also possible for a contract
to exist even if existed the subject matter was already existing but did not belong in ownership to the seller
at the time of perfection.

- The perfection of a sale merely creates the obligation on the part of the seller to transfer
ownership, but by itself perfection does not transfer ownership.
- The law provides that the vendor must have a right to transfer the ownership at the time of
delivery.

At Consummation Stage – When goods are sold by a person who is not the owner, and who does
not sell them under authority or with the consent of the owner, the buyer acquires no better title
to the goods than the seller had.

- Nemo dat quod non habet.

Sale by Co-Owner of the Whole Property or Definite Portion Thereof

- None of the co-owners may claim any right, title or interest to a particular portion of the thing
owner in common.
- A co-owner has no right to sell a divided part of the real estate, although he is the owner of an
undivided half of a tract of land, he has a right to sell and convey an undivided half, but he has
no right to divide the lot into two parts, and convey the whole of one part by metes and bounds.
- E.g. Isagani, Leo, and Paul are siblings. Both of their parents died due to an accident.
Automatically and upon the death of their parents, all their parents’ properties will be
automatically transferred under the name of the siblings. The Kind of ownership that the
siblings have in those properties is called co-ownership.

EXCEPTION IF SALE IS BY NON-OWNER

1. Estoppel on True Owner

a. Estoppel is a condition or state by virtue of which an admission or representation is
rendered conclusive upon the person making it and cannot be denied or disproved as
against the person relying thereon.
b. The Civil Code provides that when a person who is not the owner of a thing sells or
transfers and delivers it, and latter the seller or grantor acquires title thereto, the title
passes by operation of law to the buyer or guarantee.
c. E.g. During the perfection stage Camille was able to sell the undivided portion of a real
property to Oscar. However, Camille is only a co-owner of the property. Three days
after the consummation stage, the property was partitioned and Camille already
determined her share from that sold property. Because of this, the title of the property
will automatically be transferred to Oscar as there was a valid contract of sale between
Camille and Oscar. Camille cannot say that she still has a claim on the property. Camille
was estopped from questioning the title of his buyer.
 2. Recording Laws: Torrens System
a. Torrens System – It refers to a system of registration of transactions with interest in
land whose declared object is, under government authority, to establish and certify to
the ownership of an absolute and indefeasible title to realty, and to simplify its
transfer.

SALE BY ONE HAVING VOIDABLE TITLE

1. The possession of movable property acquired in good faith is equivalent to a title. Nevertheless,
one who has lost any movable or has been unlawfully deprived may recover it from the person
in possession of the subject.
2. If the possessor of a lost movable or a movable which the owner has been unlawfully deprived,
has acquired it in good faith at a public sale, the owner cannot obtain its return without
reimbursing the price paid therefor.
a. E.g. Eric acquired an Iphone through sale from a public market. However, that Iphone
is stolen from Joel. Considering that Eric acquired such item in good faith from a public
sale, the only thing that Joel can do to recover it is to reimburse Eric with the equivalent
price.