Tradition | Different Modes of Acquiring Ownership | PROPERTY, OWNERSHIP, AND ITS MODIFICATIONS

CIVIL LAW > IX. PROPERTY, OWNERSHIP, AND ITS MODIFICATIONS > C. Different Modes of Acquiring Ownership > 2. Tradition

Tradition Defined

Tradition, derived from the Latin term "traditio," is a legal mode of transferring ownership of a corporeal thing through delivery. It signifies the actual or constructive transfer of possession from one person (the transferor) to another (the transferee), coupled with the intent to transfer ownership. Tradition is fundamental under Philippine Civil Law, as it ensures that the consensual transfer of property rights materializes into ownership.

Legal Basis

Tradition is governed by the Civil Code of the Philippines, particularly under provisions concerning the transfer of ownership and the law on obligations and contracts. Key articles include:

• Article 712: "Ownership and other real rights over property are acquired and transmitted by law, donation, testate and intestate succession, tradition, and prescription."
• Article 1459: "The thing sold must be delivered to the buyer in order to transfer ownership."
• Article 1496-1501: Define the rules governing tradition in contracts of sale.

Requisites of Tradition

1. Existence of a Just Title:
   • The transferor must have a valid cause or basis for transferring ownership, such as a contract of sale, donation, barter, or any juridical act creating the obligation to deliver.
2. Actual or Constructive Delivery:
   • There must be an overt act of delivery, whether physically (actual delivery) or symbolically (constructive delivery).
3. Intention to Transfer Ownership:
   • The transferor must intend to transfer ownership, and the transferee must intend to acquire ownership.
4. Capacity:
   • Both parties must have the legal capacity to enter into the transaction.

Modes of Tradition

Tradition may take different forms depending on the nature of the delivery and the circumstances of the transaction. These are classified as follows:

1. Actual Tradition (Traditio Corporalis):

• The physical handing over of the thing from the transferor to the transferee.
• Example: Handing over the keys to a car sold.

2. Constructive Tradition:

Constructive delivery occurs when physical delivery is substituted by juridical acts. The Civil Code recognizes the following forms of constructive tradition:

• Traditio Symbolica:

  • Delivery through symbolic acts, such as handing over the keys to a property or a document of title.
  • Example: Delivery of a warehouse receipt or keys to a house.

• Traditio Longa Manu:

  • Delivery by pointing out or identifying the thing to be delivered, enabling the transferee to take possession.
  • Example: A seller points to a piece of furniture sold within a warehouse.

• Traditio Brevi Manu:

  • Delivery where the transferee is already in possession of the thing but starts holding it in the capacity of owner.
  • Example: A lessee buys the leased property; there is no need for physical transfer.

• Constitutum Possessorium:

  • Delivery where the transferor retains possession of the thing but ceases to hold it in the capacity of owner.
  • Example: An owner sells a property but agrees to lease it back from the buyer.

3. Quasi-Tradition:

• Applies to incorporeal property (rights or intangibles), where the ownership is transferred through consent and the delivery of documents or other symbolic means.

4. Legal Tradition:

• Delivery imposed by law, such as when a court adjudicates ownership in a judicial sale or foreclosure proceeding.

Effects of Tradition

1. Transfer of Ownership:

   • Ownership is transferred only upon delivery, even if the price has not been paid, unless there is a stipulation to the contrary.
   • Exceptions:
     • Ownership may not transfer if the delivery is subject to a suspensive condition that has not been fulfilled.
     • Retention of ownership clauses (e.g., pacto de retro sale).

2. Risk of Loss:

   • The risk of loss transfers to the buyer upon delivery unless otherwise stipulated. This principle is tied to the doctrine of "res perit domino" (the thing perishes for the owner).

3. Good Faith Possession:

   • Tradition grants possession in good faith to the transferee, who may be protected under certain circumstances, such as acquiring property from a seller who did not have full ownership (subject to rules on double sales).

Tradition and Double Sales

Under Article 1544 of the Civil Code:

• Ownership is determined by:
  1. The first person to register the property in good faith.
  2. If none registered, the first to take possession in good faith.
  3. If none took possession, the buyer who presents the oldest title in good faith.

This underscores the importance of tradition in securing ownership over competing claims.

Limitations and Exceptions

1. Non-Delivery:
   • Ownership does not transfer if there is no delivery, even if the parties have a perfected contract.
2. Void Contracts:
   • Tradition cannot confer ownership if the underlying contract is void ab initio.
3. Property Under Legal Restrictions:
   • Certain properties (e.g., public lands, ancestral domains) cannot be transferred through tradition unless specific legal requisites are met.

Conclusion

Tradition is a cornerstone of the transfer of ownership in Philippine Civil Law. Its meticulous application ensures that ownership rights are transferred securely and in compliance with legal standards. Parties engaging in transactions must understand the nuances of tradition to safeguard their rights and obligations effectively.