Title
Selerio vs. Bancasan
Case
G.R. No. 222442
Decision Date
Jun 23, 2020
Nieves Selerio transferred property to Tregidio Bancasan in 1993; dispute arose over unpaid balance and possession. Tregidio filed for recovery in 2007; SC ruled action not prescribed, remanded for trial on merits.

Case Summary (G.R. No. 209359)

Relevant Proceedings

This case is a Petition for Review on Certiorari filed under Rule 45 of the Rules of Court. It challenges the decision by the Court of Appeals that reversed the Regional Trial Court's (RTC) Orders which dismissed the respondent's complaint on prescription grounds.

Facts of the Case

Nieves Selerio claimed possession of a 600-square meter parcel of land at Garcia Heights, Davao City. On September 18, 1993, Nieves executed a Deed of Transfer and Waiver of Rights, selling the property to Tregidio Bancasan for a total of PHP 200,000, of which only half was initially paid. The Deed stipulated that Tregidio would pay the remaining amount upon Nieves's vacating the premises by April 30, 1994. A subsequent legal dispute arose when Nieves's alleged illegitimate children contested the property, leading to a Compromise Agreement in 1997 that acknowledged the sale to Tregidio.

Prescription of Action

The primary issue is whether Tregidio's action for recovery of possession has prescribed. The RTC initially ruled that it had prescribed, stating that the cause of action accrued when Nieves failed to vacate the property by the agreed date in 1994. Tregidio filed his complaint on February 28, 2007, more than 12 years after the alleged obligation to vacate.

RTC's Ruling

The RTC found that Tregidio's right to recover the property was based on the Deed, which constituted a contract for specific performance. The court concluded that since the action was filed after the lapse of the ten-year prescription period (per Article 1144 of the Civil Code), the complaint was barred by prescription.

CA's Ruling

The Court of Appeals reversed the RTC's ruling, asserting that the prescriptive period had not elapsed. It classified the transaction as a contract of sale, stating that Tregidio was the rightful owner and that the prescriptive period did not begin until he formally demanded possession in 2007. The CA concluded the petitioners' occupancy of the property after April 30, 1994, was due to Tregidio's tolerance, meaning the action was not barred.

Court's Analysis and Ruling

The Supreme Court agreed with the CA's conclusion regarding the lack of prescription, but the reasoning was different. The Court noted that the RTC erred in its remark regarding the non-existence of a perfected sale due to non-payment and lack of property delivery. It clarified that the essence of a sale is the meeting of consent, and that a contract is perfected once these conditions are met, irrespective of payment.

However, the Court highlighted that issues pertaining to the validity of the

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