27/06/2025
The Supreme Court has ruled that a land sale made through a verbal, unwritten agreement can be considered valid and bindingโas long as it has been partly or fully carried out.
The (SC) has ruled that a land sale made through a verbal, unwritten agreement can be considered valid and bindingโas long as it has been partly or fully carried out.
In a Decision written by Associate Justice Samuel H. Gaerlan, the SCโs Third Division upheld the verbal sale of land between Marcos Batara (Batara) and his nephew Benedicto Ocampo (Ocampo). Even without a written contract, the SC found the sale valid because Ocampo had already received the land title, moved into the property, and made improvements on it.
The land was registered in the name of Batara, who passed away in 1974. His children, Noblesa and Ernesto, only learned of their fatherโs ownership of the property in 2007, when they received a notice to pay unpaid real estate taxes on the land and found out that the same was being occupied by their cousin, Ocampo.
Noblesa and Ernesto filed a case to reclaim the land from Ocampo, saying they were the rightful heirs. Ocampo, on the other hand, claimed he bought the land from Batara while the latter was still alive. After Batara died, Ocampo kept paying installments to Marcelo, Bataraโs brother.
Ocampo admitted that the sale was not evidenced by any written document because Batara died before they could execute the necessary instruments. But Ocampo provided the ownerโs copy of land title as proof, claiming Batara gave it to him after the initial payment in 1972.
Ruling in Ocampoโs favor, the SC said that under the Civil Code, a sale of land must be in writing to be enforced in court. This written document serves as proof that both parties agreed to the sale.
However, the sale is still considered valid even without a written contract if it has already been fully or partly carried out. In such cases, a verbal agreement can still be legally binding, and witnesses may be allowed to testify to prove that the sale happened.
In this case, the sale was partially executed as Ocampo had partially paid for the land, taken possession of it, received the land title, and paid real property taxes. The SC thus admitted the testimonies of Ocampo and his witnesses, which proved the sale.
The SC, however, found that Ocampoโs payments to Bataraโs brother Marcelo were ineffective because he was not authorized to accept them on behalf of his brotherโs heirs.
Therefore, while the sale remains valid, Ocampo must pay the remaining balance of the purchase price, with interest, to Noblesa and Ernesto.
Read the full text of the Press Release at https://tinyurl.com/yeapyzcd.
Read the full text of the Decision at https://tinyurl.com/msxr7hsd.
Copying of this content is subject to the SC PIOโs Credit Attribution Policy: https://sc.judiciary.gov.ph/credit-attribution-policy/.
