The Supreme Court ruled that a claim for legal redemption of property shares, made decades after the initial sale and without formal written notice, is invalid. This decision highlights the importance of promptly asserting rights and adhering to procedural requirements in property disputes, ensuring that claims are made within the prescribed legal timeframe to avoid their extinguishment.

Missed Opportunities: When a Family’s Land Dispute Hinged on a Timely Notice

This case revolves around a parcel of land in Zamboanga del Norte originally owned by spouses Ipo Bawing and Tanod Subano. After their deaths, the property was inherited by their children. Over time, some of the heirs sold their shares to spouses David and Luz Barrios, who later reconveyed these shares to Fausto and Benigno Isaw, sons of one of the original heirs. Later, Fausto sold his interest to Benigno, who then registered the land under his name. Decades later, other heirs of the original owners sought to annul the titles, claiming the land should be partitioned among all heirs. The central legal question is whether these heirs could still claim their rights to the property, given the passage of time and the actions taken by Benigno Isaw.

The petitioners argued that there was an agreement for Fausto and Benigno to redeem the property for the benefit of all the heirs, subject to reimbursement and subsequent partition. They claimed that Benigno fraudulently titled the property in his name without fulfilling this agreement. The respondents, heirs of Benigno Isaw, countered that there had been an oral partition, and that Benigno had effectively repudiated any co-ownership by registering the land in his name, triggering the statute of limitations. The Regional Trial Court (RTC) initially sided with the petitioners, declaring the titles null and void and ordering partition, but the Court of Appeals (CA) reversed this decision, upholding Benigno’s titles and ordering partition of only the remaining portions of the property.

At the heart of this case is Article 1088 of the Civil Code, which provides a mechanism for co-heirs to redeem hereditary rights sold to a stranger. It states:

“Should any of the heirs sell his hereditary rights to a stranger before the partition, any or all of the co-heirs may be subrogated to the rights of the purchaser by reimbursing him for the price of the sale, provided they do so within the period of one month from the time they were notified in writing of the sale by the vendor.”

The Supreme Court emphasized that for legal redemption to apply, several requisites must be met, including a written notice of the sale from the vendor to the co-heirs. The Court found that this requirement was not met in this case. While there’s a general requirement for a 30-day redemption period following written notice of the sale by the vendor, the Supreme Court has previously carved out exceptions. The case of Alonzo v. Intermediate Appellate Court (234 Phil. 267 (1987)) held that actual notice could satisfy the law’s requirement. In Mariano v. Court of Appeals, (294 Phil. 156 (1993)) the Court declared:

“The requirement of a written notice has long been settled as early as in the case of Castillo v. Samonte, where this Court quoted the ruling in Hernaez v. Hernaez, 32 Phil., 214…“

Despite the absence of written notice, the Court considered whether the co-heirs had actual knowledge of the sales. The petitioners themselves admitted that Fausto and Benigno had contested the validity of the original sales to spouses Barrios, suggesting that the co-heirs were aware of these transactions. Given this knowledge and the significant lapse of time, the Court concluded that the right to redeem had already been extinguished. The original sales occurred in 1960 and 1962, and the resale to Fausto and Benigno occurred in 1976, more than a decade later.

Building on this principle, the Court also noted that Benigno had registered the property in his name in 1980 and had been in open and continuous possession since then. This further supported the conclusion that the petitioners were aware of Benigno’s claim and had failed to take timely action to assert their rights. This open possession served as a clear assertion of ownership, effectively precluding the other heirs from claiming ignorance or belatedly seeking redemption.

The Court ruled that the transaction covered by the Deed of Resale was an ordinary sale for the benefit of Fausto and Benigno, not a redemption inuring to all heirs. As such, Benigno rightfully became the owner of the shares corresponding to Octoc, Igbay, and Martina, and could register the lots in his name under the Torrens system. The Supreme Court sided with Benigno’s heirs, emphasizing that the failure to act promptly on their redemption rights resulted in the loss of their claims. This decision underscores the necessity of adhering to legal timelines and procedures when asserting property rights, particularly in cases involving inheritance and co-ownership.

This case underscores the critical importance of timely action and adherence to legal procedures in property disputes. Heirs must be vigilant in asserting their rights, ensuring compliance with notice requirements and limitation periods to protect their claims. The decision serves as a reminder that inaction can have significant legal consequences, potentially resulting in the loss of valuable property rights.

FAQs

What was the key issue in this case?	The key issue was whether the petitioners could still claim their rights to a property for partition, given the passage of time and the actions taken by one of the heirs who registered the land under his name.
What is legal redemption under Article 1088 of the Civil Code?	Article 1088 provides co-heirs the right to subrogate to the rights of a purchaser when one heir sells their hereditary rights to a stranger, provided they reimburse the price within one month of written notice.
What is the written notice requirement for legal redemption?	The law generally requires written notice from the vendor to the co-heirs to trigger the 30-day period for exercising the right of legal redemption. However, the Supreme Court has recognized exceptions where actual notice may suffice.
Why was the claim for partition denied in this case?	The claim was denied because the petitioners failed to exercise their right of legal redemption within the prescribed period after having knowledge of the sale of shares to a third party.
What is the significance of Benigno Isaw registering the property in his name?	Benigno registering the property served as a clear assertion of ownership, which should have prompted the other heirs to take action if they believed they had a claim.
What does it mean to “repudiate co-ownership” in this context?	Repudiation of co-ownership means that one co-owner clearly and unequivocally asserts exclusive ownership over the property, effectively denying the rights of the other co-owners.
What was the Court of Appeals’ ruling in this case?	The Court of Appeals reversed the RTC’s decision, upholding the validity of the titles registered in Benigno Isaw’s name and ordering partition of only the remaining portions of the property.
How did the Supreme Court apply the principles of equity in this case?	The Supreme Court considered the petitioners’ knowledge of the sales and their prolonged inaction, concluding that it would be inequitable to allow them to claim rights after such a long delay.
What is the main takeaway from this Supreme Court decision?	The main takeaway is the importance of promptly asserting legal rights, particularly in property disputes, and adhering to procedural requirements to avoid the loss of those rights due to the passage of time.

In conclusion, this case serves as a crucial reminder for heirs to be proactive in protecting their inheritance rights. Diligence in understanding property transactions and adherence to legal timelines are essential to prevent the extinguishment of claims. A failure to act promptly can lead to irreversible consequences, as demonstrated by the petitioners’ loss in this case.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: Guino Escabarte, et al. vs. Heirs of Benigno Isaw, G.R. No. 208595, August 28, 2019