Read also: Frequently Asked Questions on Land Titles and Dealings with Real Property
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There is double sale when the same object of the sale is sold to different vendees.
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In case of double sale, if the thing sold is a personal property, the ownership shall be transferred to the person who had first taken possession of the property in good faith.
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If the property sold was a real property, the ownership shall belong to the buyer who first registered in good faith the real property.
There is double sale when the same object of the sale is sold to different vendees. In the case of Cheng V. Genato (G.R. No. 129760, December 29, 1998), the Supreme Court enumerated the requisites of when a case is considered a double sale.
Thus, there is double sale when the following are present:
- The two (or more) sales transactions in the issue must pertain to exactly the same subject matter, and must be valid sales transactions.
- The two (or more) buyers at odds over the rightful ownership of the subject matter must each represent conflicting interests; and
- The two (or more) buyers at odds over the rightful ownership of the subject matter must each have bought from the very same seller.
And in such case, who among the two vendees will be entitled to the disputed properties?
Civil Code provides that:
“Art. 1544. If the same thing should have been sold to different vendees, the ownership shall be transferred to the person who may have first taken possession thereof in good faith, if it should be movable property.
Should it be immovable property, the ownership shall belong to the person acquiring it who in good faith first recorded it in the Registry of Property.
Should there be no inscription, the ownership shall pertain to the person who in good faith was first in the possession; and in the absence thereof, to the person who presents the oldest title, provided there is good faith.”
Accordingly, in case of double sale, if the thing sold is a personal property, the ownership shall be transferred to the person who had first taken possession of the property in good faith.
However, if the property sold was a real property, the ownership shall belong to the buyer who first registered in good faith the real property. In case both buyers have not registered the property, the first to possess it in good faith owns the property. And in case the property was not registered and not under the possession of any of the two buyers, the buyer with the oldest title in good faith has ownership thereof.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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