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Dear PAO,

I bought a certain lot from Jose which I have been renting for a long period of time. We signed a deed of absolute sale covering the transaction, but the sale is not yet registered. After two months, Jose revealed to me that the same lot was sold by the local government unit in an auction due to non-payment of real property tax, and Lito emerged as the highest bidder. I was informed that the remedy here is redemption within one year from the sale. Lito claimed that the only party who can redeem the property is Jose and not me. Jose is no longer interested in meddling, so I would like to ask if I can redeem the property or exercise redemption beyond the one year period.

Julio

Dear Julio,

Redemption of property sold in a delinquency auction is governed by Section 261 of the Local Government Code of 1991 (Republic Act 7160):

“Within one (1) year from the date of sale, the owner of the delinquent real property or person having legal interest therein, or his representative, shall have the right to redeem the property upon payment to the local treasurer of the amount of the delinquent tax, including the interest due thereon, and the expenses of sale from the date of delinquency to the date of sale, plus interest of not more than two percent (2%) per month on the purchase price from the date of sale to the date of redemption. Such payment shall invalidate the certificate of sale issued to the purchaser and the owner of the delinquent real property or person having legal interest therein shall be entitled to a certificate of redemption which shall be issued by the local treasurer or his deputy.

“From the date of sale until the expiration of the period of redemption, the delinquent real property shall remain in the possession of the owner or person having legal interest therein who shall be entitled to the income and other fruits thereof.

“The local treasurer or his deputy, upon receipt from the purchaser of the certificate of sale, shall forthwith return to the latter the entire amount paid by him plus interest of not more than two percent (2%) per month. Thereafter, the property shall be free from the lien of such delinquent tax, interest due thereon and expenses of sale.”

You are now the present owner of the property, or the person having legal interest in said property, considering that Jose sold it to you. There was already a transfer of ownership when you signed the deed of sale, although there was a failure to register the sale. This is in consonance with Article 1498 of the New Civil Code of the Philippines which provides that: “when the sale is made through a public instrument, the execution thereof shall be equivalent to the delivery of the thing which is the object of the contract, if from the deed the contrary does not appear or cannot clearly be inferred.” Thus, you are a proper party to redeem the delinquent property.

Generally, redemption must be exercised within one (1) year, but the court may allow redemption beyond that period. The reason was explained in Villarete vs. Alta Vista Golf and Country Club, Inc. (GR 255212, Feb. 20, 2023), where the Supreme Court, speaking through Associate Justice Alfredo Benjamin Caguioa, stated that:

“Verily, while redemption must be made within the period provided by law, the Court has also allowed a redemptioner to redeem property even after the lapse of the one-year period by reason of justice and equity.

“In the present case, Anita gave notice to the City Treasurer of Cebu as early as May 22, 2012 that she intended to redeem the subject property. On May 28, 2012, or on the last day of the redemption period, Anita was ready to pay the full amount in cash, but was turned down by the Real Property Tax Division of the City of Cebu simply because she was unable to bring with her a written document that would prove her identity as an heir of Benigno — a document she was in fact able to bring just two (2) days after. These circumstances show that there was an earnest and sincere effort to tender payment and exercise the right to redeem on Anita’s part. xxx To stress, where the redemptioner has chosen to exercise the right of redemption, it is the policy of the law to aid rather than to defeat such right, viz.:

“In giving effect to these laws, it is also worthy to note that in cases involving redemption, the law protects the original owner. It is the policy of the law to aid rather than to defeat the owner’s right. Therefore, redemption should be looked upon with favor and where no injury will follow, a liberal construction will be given to our redemption laws, specifically on the exercise of the right to redeem.

“In fealty to the protection given by redemption laws to the original owners, and considering that no considerable harm will be caused to the buyer (who, in fact, will be paid two percent [2%] per month interest) — as compared to the grave loss that a redemptioner will suffer when deprived of his or her property — the right of redemption of Anita should be upheld.”

Applying the above-quoted decision in your situation, jurisprudence allows redemption beyond one (1) year because of the policy of the law to aid rather than to defeat the property rights of the owner in redemption. Consequently, liberal construction may be given to redemption laws like the right to redeem, provided no considerable harm will be caused to the buyer.

We hope that we were able to answer your queries. Please be reminded that this advice is based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated on.

Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office.