Case Summary (G.R. No. 156364)
Petitioner’s Motion for Partial Reconsideration
The petitioner filed a Motion for Partial Reconsideration on September 3, 2007, disputing the order requiring him to return an amount of ₱2,125,540.00 to the respondent. The basis for his contention is the argument that the Contract to Sell does not violate constitutional limitations against foreign ownership of land, as it pertains solely to the transfer of a condominium unit and its associated rights, rather than land itself.
Legal Basis of the Contract
The contract specifies that upon full payment, the buyer will receive a Deed of Absolute Sale that conveys the seller's rights to the condominium unit and its common areas. The seller is also obligated to provide a Condominium Certificate of Title rather than a transfer of land ownership. The contract is subject to applicable laws, specifically Republic Act No. 4726, known as the Condominium Act, and Presidential Decree No. 957, which govern the sale of subdivision lots and condominiums.
Applicable Law and Constitutional Context
Under Republic Act No. 4726, foreign nationals are permitted to own condominium units under specific conditions. The law stipulates that ownership of a condominium unit includes a corresponding undivided interest in the common areas, and such ownership is contingent on compliance with the stipulations regarding the corporate structure of the Condominium Corporation. A key provision in this law allows for up to 40% foreign ownership in a Corporation, provided that 60% of the corporation is owned by Filipino citizens.
Separation of Land and Unit Ownership
The legal framework maintains that while the land on which a condominium resides is owned by the Condominium Corporation, the owner of a condominium unit holds membership in the corporation and, thus, certain ownership rights. This separation ensures compliance with constitutional provisions, as the alien interest in the property does not exceed the limits set by law. Hence, the petitioner, as a member of the Condominium Corporation, was not in violation of the constitutional prohibition against foreign land ownership.
Ruling on the Motion for Partial Reconsideration
Having considered the arguments and legal context, the Court found merit in the petitioner’s Motion for Partial Reconsideration. The prior ruling directing the return of ₱2,125,540.00 was modified, removing the order to return the
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Case Overview
- This case involves a petition filed by Jacobus Bernhard Hulst against PR Builders, Inc. regarding a motion for partial reconsideration of a previous decision made by the Court.
- The initial ruling dated September 3, 2007, granted the petition in favor of the petitioner, reversing the earlier decision of the Court of Appeals, and declaring certain actions by HLURB Arbiter Ma. Perpetua Y. Aquino and Director Belen G. Ceniza as null and void.
Initial Decision
- The Court's September 3, 2007 decision included several key points:
- The order to return the amount of P2,125,540.00 to the respondent was included.
- The Court directed HLURB Arbiter Aquino and Director Ceniza to issue certificates of sale in favor of Holly Properties Realty Corporation.
- The ruling established interest accruing on the returned amount after the judgment's finality.
Motion for Partial Reconsideration
- Petitioner filed for partial reconsideration specifically challenging the order to return P2,125,540.00.
- Petitioner’s argument centered on the nature of the Contract to Sell, asserting that it pertained to a condominium unit and did not violate constitutional provisions regarding land ownership by foreigners.
- Key assertions in petitioner's argu