WHAT HAPPENED? CHOOSE YOUR NEXT STEP
• You are about to buy property — Run through the checks before signing or paying. Use the pre-signing checklist.
• Installments were missed — Find out whether the seller can cancel and what the buyer keeps. Review the default rules.
• The seller sold the same property to someone else — See how Article 1544 ranks the competing buyers. Check who owns it.
• The land is smaller than the deed says — Price reduction, rescission and a six-month deadline. Check your remedy.
Use this hub for any sale of property under the Civil Code, from the first deposit to the transfer of title. The single most important question is usually what kind of contract was signed: a contract of sale passes ownership on delivery, while a contract to sell keeps ownership with the seller until the price is fully paid, and that difference decides which remedies are available when something goes wrong.
START HERE — WHAT KIND OF SALE IS IT?
• Contract of Sale vs Contract to Sell — when ownership passes and how each can be cancelled.
• Cash Sale vs Installment Sale — ownership, default remedies, and when the Maceda Law or Recto Law applies.
• Buyer and Seller Remedies — the remedies for non-payment and non-delivery in one place.
BEFORE YOU BUY
• Before You Sign a Deed of Sale: Checklist — the ten checks to finish before signing or paying.
• Documents to Check Before Paying — the paper trail a buyer should see first.
• How to Verify a Land Title — certified true copies, annotations and red flags.
• Verify the Seller Owns the Property — identity, authority and marital consent.
• Check for Liens, Mortgages and Adverse Claims — reading the encumbrances on the title.
• What Should Be in a Contract to Sell — clauses that protect each side.
PAYMENT, DEED AND TITLE TRANSFER
• When to Release the Down Payment — timing payment against the seller’s performance.
• Purchase Timeline: Pay, Sign, Transfer — the order of steps from deposit to registration.
• Who Pays the Taxes and Fees — capital gains tax, DST, transfer tax and registration.
• How Long Title Transfer Takes — the agencies involved and where delays happen.
DEPOSITS: EARNEST MONEY, DOWN PAYMENT AND OPTION MONEY
• Earnest Money Under Article 1482 — what earnest money proves and how it is applied.
• Earnest Money vs Down Payment vs Option Money — three payments that are often confused.
• Can the Seller Keep Earnest Money? — forfeiture after the buyer backs out.
• Can the Seller Forfeit a Down Payment? — when forfeiture clauses hold up.
INSTALLMENT SALES: MACEDA LAW AND RECTO LAW
• Maceda Law (RA 6552) — grace periods, cash surrender value and valid cancellation.
• Buyer Misses Installment Payments — what the seller may do and what the buyer keeps.
• Recto Law (Article 1484) — installment sales of cars, appliances and other movables.
• Refund From a Developer — when a buyer can demand money back.
DEFAULT, CANCELLATION AND REMEDIES
• Buyer Fails to Pay — the seller’s options.
• Seller Fails to Deliver — when the buyer can cancel.
• Forcing the Seller to Deliver — specific performance against the seller.
• Cancelling for Late Payment — when delay justifies cancellation.
• Recovering Payments After Cancellation — what the buyer gets back.
• Keeping Payments as Rent for Use — when the seller may retain part of the price.
• Returning the Property After Resolution — mutual restitution in practice.
• Reselling After Cancellation — when the seller is free to sell again.
DISPUTES OVER THE THING SOLD
• Double Sale Under Article 1544 — who wins when the same property is sold twice.
• Land Smaller or Bigger Than Stated — per-square-meter vs lump-sum sales under Articles 1539 to 1543.
• Risk of Loss Before Delivery — who bears a loss that happens before turnover.
Key topics: perfection of a sale and its essential elements · contract of sale versus contract to sell · cash and installment sales · earnest money, down payment and option money · delivery and transfer of ownership · double sales · area and quality discrepancies · warranties against eviction and hidden defects · installment sales under the Maceda Law and the Recto Law · resolution, restitution and forfeiture · taxes and registration of the transfer.
Statutory basis: Civil Code, Book IV, Title VI on Sales (Arts. 1458 to 1637), read with Republic Act No. 6552 (the Maceda Law), Presidential Decree No. 957 for subdivision and condominium buyers, and Presidential Decree No. 1529 on registration of the transfer.
In the Code: Book IV, whose Title VI governs contracts of sale.
In a contract of sale the seller agrees to transfer ownership, which passes on delivery. In a contract to sell the seller keeps ownership until full payment. The difference decides remedies, cancellation and Maceda Law protection.
Earnest money, a down payment and option money are three different payments. Earnest money is part of the price and proof of a perfected sale under Article 1482; option money is a separate consideration for an option under Article 1479.
Get the certified true copy yourself, read every annotation, match the land on the ground, verify the seller’s authority, and clear mortgages and adverse claims before you pay. The copy the seller shows you proves nothing on its own.