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Conventional Redemption. Art. 1601. Requisites REV-CR

The document summarizes the characteristics of conventional redemption in real estate transactions. It notes that conventional redemption allows the original vendor to repurchase the property by reimbursing the buyer's costs and returning the sale price. It also distinguishes between a pacto de retro sale, where ownership transfers permanently to the buyer if redemption does not occur by the agreed deadline, and a mortgage, where the original owner can redeem the property even after a foreclosure sale under certain conditions. Finally, it outlines several other differences in terms of parties' rights and obligations under the two types of agreements.

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19 views2 pages

Conventional Redemption. Art. 1601. Requisites REV-CR

The document summarizes the characteristics of conventional redemption in real estate transactions. It notes that conventional redemption allows the original vendor to repurchase the property by reimbursing the buyer's costs and returning the sale price. It also distinguishes between a pacto de retro sale, where ownership transfers permanently to the buyer if redemption does not occur by the agreed deadline, and a mortgage, where the original owner can redeem the property even after a foreclosure sale under certain conditions. Finally, it outlines several other differences in terms of parties' rights and obligations under the two types of agreements.

Uploaded by

Hey Lucy
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CONVENTIONAL REDEMPTION.

Art. 1601. Requisites REV-CR


a. The vendor reserves the right to repurchase the thing sold
b. He shall shoulder the expenses of the contract and other legitimate payments made by
the buyer.
c. He shall pay the value of the necessary and useful expenses made on the thing incurred
by the buyer
d. He shall comply with other stipulations agreed upon.
e. He shall return the price of the sale

Characteristics of Conventional Redemption [EAR RPR]


a. It begins to exist at the time of the perfection of the contract. (It becomes a mere promise
to sell if stipulated upon after the sale had been consummated)
b. It is an accidental stipulation because it is a right created by the parties
c. It is reciprocal when the right to redeem is exercised. (both vendor and vendee
has obligations with each other)
d. It gives rise to a real right when properly registered because it affects third persons.
e. It is potestative as its exercise depends upon the sole will of the vendor.
f. It is a resolutory condition because when it is fulfilled, the ownership of the vendee over
the thing is extinguished

PACTO DE RETRO SALE vs. MORTGAGE


PACTO DE RETRO SALE MORTGAGE
Ownership is consolidated in the vendee if Failure of mortgagor to pay his obligations
vendor does not repurchase w/in time agreed on time does not deprive him of his interest in the
upon property
No obligation on the part of the vendee to Mortgagee must foreclose if he wants to secure
foreclose a perfect title
Vendor has no more right to redeem after Mortgagor may redeem before foreclosure and
expiration of period to redeem even after, w/in one year from registration of
the sale in extra-judicial foreclosure. In judicial
foreclosure redemption may be made before
confirmation of the sale by the court.
Vendee may alienate property Mortgagee cannot alienate property
Vendee becomes automatically the owner in Mortgagee does not automatically become
case of vendor’s failure to redeem owner, there must be foreclosure sale first
Vendee is entitled to reimbursement Mortgagee is not entitled to reimbursement for
for necessary and useful expenses improvements he made

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