DISPOSITIVE:

“ACCORDINGLY, the petition for review is PARTLY GRANTED. The Decision dated November 29, 2016 and Resolution dated May 26, 2017 of the Court of Appeals in CA-G.R. SP No. 137086 are MODIFIED, as follows:

1) Petitioner Fil-Estate Properties, Inc. is ORDERED to immediately EXECUTE a notarized Deed of Absolute Sale covering Ground Retail Unit B, West Tower in favor of respondent Hermana Realty, Inc., PROVIDE an original copy thereof to respondent Hermana Realty, Inc., and CAUSE its registration pursuant to Section 17 of PD 957;

2) Petitioner Fil-Estate Properties, Inc. is DIRECTED to DELIVER the owner’s duplicate copy of the Condominium Certificate of Title to respondent Hermana Realty, Inc.; and

3) Respondent Hermana Realty, Inc. is ORDERED to directly settle the taxes and registration expenses with the government within the periods prescribed under the law and take charge of causing the issuance of a new Condominium Certificate of Title in its name.

So Ordered.”

SUBJECTS/DOCTRINES/DIGEST:

WHAT HAPPENED IN THIS CASE?

FIL-ESTATE AND HERMANA REALTY EXECUTED A CONTRACT TO SELL WHEREBY FIL-ESTATE SHALL SELL TO HERMANA REALTY A CONDO UNIT. IT IS STIPULATED THAT HERMANA REALTY WILL PAY THE DOC STAMP TAX, VAT AND TRANSFER TAX. UPON FULL PAYMENT HERMANA DEMANDED FIL-ESTATE TO CONVEY THE DEED OF ABSOLUTE SALE AND THE OWNER’S DUPLICATE CCT. FIL-ESTATE REFUSED UNLESS HERMANY REALTY PRODUCE PROOF THAT IT HAS PAID THE DOC STAMP TAX, VAT AND TRANSFER TAX. SUPREME COURT SAID THAT UPON FULL PAYMENT THE BUYER CAN DEMAND EXECUTION OF THE DEED OF ABSOLUTE SALE AND ORIGINAL COPY OF OWNER’S TITLE.

The registration of the final deed of sale here is the obligation of FEPI under Section 17 (of PD 957). On the other hand, issuance of title under Section 25 should be construed to mean delivery by FEPI of the owner’s duplicate copy of the CCT, again for purposes of causing the registration of the property in the buyer’s name.

As it was, FEPI violated both provisions of law Not only did it fail to register the deed of absolute sale before the Register of Deeds, it also refused to deliver to HR.I the owner’s duplicate copy of the CCT.

Notably, FEPI’s obligations to register the final deed of sale (Section 17) and deliver the owner’s duplicate copy of the CCT (Section 25) are distinct from the obligation ofHRI, as buyer, to legally process the transfer of the CCT in its name as the now registered owner.

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