CITY MAYOR OF QUEZON CITY ET.AL. vs.

RCBC
G.R. No. 171033

FACTS:

The spouses Naval obtained a loan from respondent Rizal Commercial Banking Corporation (RCBC), secured by
a real estate mortgage over certain properties covered by TCT Nos. N-167986, N-167987, and N-167988. These
properties were later foreclosed and the sold at public auction with RCBC as the highest bidder. Certificates of
Sale were issued in favor of RCBC and registered on February 10, 2004. Meanwhile, an auction sale over the said
properties was conducted by petitioner City Treasurer of Quezon City due to tax delinquencies over the same.
RCBC tendered payment for all of the assessed tax delinquencies, interest, and charges with the Office of the
City Treasurer and for the subsequent issuance of the certificate of redemption in its favor but the same were
denied on the ground that the tender of payment was made beyond the redemption period as set forth under
Section 261 of R.A. 7160.

ISSUE:

Whether or not the period of redemption in a realty tax sale in Quezon City has to be reckoned from the date of
annotation of the certificate of sale pursuant to par. 7, section 14 of Quezon City tax Ordinance No. SP-91-93 or
from the date of sale pursuant to section 261 of R.A. 7160

RULING:

Section 261 of R.A. No. 7160 (Local Government Code) provides for a period of 1 year from the date of sale
within which the right to redeem the property should be exercised. While City Ordinance No. SP-91, S-93,
otherwise known as the Quezon City Revenue Code of 1993, provides that the right to redeem should be
exercised within 1 year from the date of the annotation of the sale of the property at the proper registry.

To harmonize the provisions of the two laws, Section 14 (a), Paragraph 7 of City Ordinance No. SP-91, S-93 should
be construed as to define the phrase "1 year from the date of sale" as appearing in Section 261 of R.A. No. 7160,
to mean "1 year from the date of the annotation of the sale of the property at the proper registry." Consequently,
the counting of the 1 year redemption period of property sold at public auction for its tax delinquency should
be counted from the date of annotation of the certificate of sale in the proper Register of Deeds. Applying the
foregoing to the case at bar, RCBC’s tender of payment was well within the redemption period.