WHEN IS OWNERSHIP TRANSFERRED?

Image Source

Published — June 1, 2022

The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.

Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.

Read also: Proving claims in land ownership disputes

• Ownership of the thing sold may be acquired by the buyer from the moment it is delivered to him.

• There is delivery when the object is placed in the control and possession of the buyer.

• When the sale is made through a public instrument, the execution of the public instrument shall be equivalent to the delivery of the thing.

In a contract of sale, when can the buyer say that he has ownership of the property?

 Under the Civil Code:

The ownership of the thing sold is acquired by the buyer from the moment it is delivered to him in any of the following:

1. when it is placed in the control and possession of the buyer;
2. when the sale is made through a public instrument, the execution of the public instrument shall be equivalent to the delivery of the thing which is the object of the contract, if from the deed the contrary does not appear or cannot clearly be inferred;
3. with regard to movable property, its delivery may also be made by the delivery of the keys of the place or depository where it is stored or kept;
4. the delivery of movable property may likewise be made by the mere consent or agreement of the contracting parties, if the thing sold cannot be transferred to the possession of the buyer at the time of the sale, or if the latter already had it in his possession for any other reason;
5. traditio constitutum possessorium – when the possessor who is the owner of the property continues his possession no longer under a title of ownership but under a title less than ownership, e. lessee, depositary, etc.;
6. the placing of the titles of ownership in the possession of the buyer or the use by the buyer of his rights, with the seller’s consent, shall be understood as a delivery; or
7. in any other manner signifying an agreement that the possession is transferred from the seller to the buyer.

However, there instances when seller is still the owner despite delivery. This includes the following instances:

1. express stipulation;
2. if under the bill of lading the goods are deliverable to seller or agent or their order;

   Please note however that this is not conclusive. Thus, although the bill of lading was in the seller’s name, still if it is agreed in the contract that the buyer should receive and dispose of the goods, it is evident that the buyer generally cannot do this unless previous ownership has been transferred to him.

3. If bill of lading, although stating that the goods are to be delivered to buyer or his agent, is KEPT by the seller or his agent;
4. When the buyer although the goods are deliverable to order of buyer, and although the bill of lading is given to him, does not honor the bill of exchange sent along with it. However innocent third parties (innocent holders and purchasers for value) should not be adversely affected.

---

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.

All rights reserved.

---

SUBSCRIBE NOW FOR MORE LEGAL UPDATES!

[email-subscribers-form id=”4″]