Legal Remedies and Complications for Buyers Relying on "Deed of Absolute Sale" in a Subdivided "Mother Lot" in the Philippines
Query:
A buyer purchased a 585 sqm parcel of land, part of a "mother lot," which has been subdivided among children/heirs. The title to the "mother lot" still bears the name of the mother, and the buyer relied solely on a "Deed of Absolute Sale" for the transaction. The seller indicated that the heirs have no interest in working to have the "mother lot" title transferred to the new owner. What legal remedies exist for the buyer, and are there legal complications?
Answer:
Title Still Under Mother's Name:
If the title to the "mother lot" remains under the name of the deceased parent, this suggests that the property has not been properly settled and divided through the legal process of estate settlement, which can be a red flag for buyers.
Deed of Absolute Sale:
The Deed of Absolute Sale is a significant document, but it is not a title. Without a proper land title, the buyer doesn't have full legal ownership of the property.
Legal Remedies for Buyer:
Extra-Judicial Settlement of Estate: One remedy is for the buyer to convince the heirs to execute an extra-judicial settlement of estate if all heirs are of legal age and there are no debts left by the deceased.
Judicial Settlement of Estate: If an extra-judicial settlement is not feasible, the buyer may need to be part of a judicial settlement of the estate to ensure that the property is properly divided and that the title can be transferred.
Annotation: The buyer can also request that the Deed of Absolute Sale be annotated on the existing title as a form of claim or encumbrance, although this doesn't replace the need for a proper title.
Legal Complications for Buyer:
Possible Invalidity: If the heirs sold the property without proper legal authority (i.e., without undergoing estate settlement), the sale could be voided, which puts the buyer at risk.
Delays: The buyer may experience significant delays in securing a proper title.
Cost: Additional costs for legal processes, such as estate settlement, could be incurred.
Summary:
Buyers in this situation face multiple legal hurdles, including possible invalidity of the transaction and delays in securing a title. Legal remedies include pursuing either an extra-judicial or judicial settlement of estate.
Note: This article is intended for informational purposes only and should not be considered as legal advice. It is always advisable to consult a qualified lawyer for advice tailored to your specific circumstances.