GR 107439; (July, 1995) (Digest)
G.R. No. 107439 July 20, 1995
MICHAEL T. UY, petitioner, vs. HON. COURT OF APPEALS, REGIONAL TRIAL COURT OF VALENZUELA, BRANCH CLXXII and ROSA SAULER, respondents.
FACTS
The spouses Numeriano Catador and Miriam Reyes agreed to sell a parcel of land to Rosa Sauler for P80.00 per square meter. Sauler paid an initial amount of P45,000.00, with the balance to be settled later. Subsequently, the Catador spouses mortgaged the entire property to State Investment House, Inc. (SIHI) to secure a loan for their niece. Upon learning of the mortgage, Sauler and the Catadors renegotiated. It was agreed that Sauler would retain a 555-square-meter portion of the lot as the equivalent of her downpayment, which she already occupied and improved. However, no separate title was issued to her as the title was held by SIHI. The niece defaulted, SIHI foreclosed, and after the redemption period, consolidated ownership. SIHI later sold the entire property to Michael T. Uy, who obtained a new transfer certificate of title.
ISSUE
Whether or not Rosa Sauler has a right of legal redemption under Article 1620 of the Civil Code over the portion of the land purchased by Michael T. Uy from SIHI.
RULING
No. The Supreme Court ruled that Sauler cannot invoke the right of legal redemption under Article 1620, which applies only to co-owners. The Court found that the verbal agreement between Sauler and the Catador spouses, followed by her payment, possession, and introduction of improvements on the specific 555-square-meter area, constituted a partially executed contract of sale. This created for Sauler an equitable title or ownership over that specific portion, while the Catadors retained ownership over the remainder. Consequently, Sauler and the Catadors were not co-owners of the entire undivided property; rather, they became owners of specific, segregated portions. Since legal redemption presupposes co-ownership of an undivided thing, the right does not apply. The Court upheld Uy’s ownership over the lot covered by his title, excluding the 555-square-meter area rightfully belonging to Sauler. The demand for legal redemption was therefore denied.