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This is a Petition for Review on certiorari of the Decision of the Court of Appeals (CA-
G.R. No. 235!-R" pro#ul$ate% on Nove#&er '( )!5( entitle% *+aria %e ,van$elista
an% -er$io ,van$elista( (now the respon%ents" vs. +ariano .lore/a (petitioner herein"(*
reversin$ the 0u%$#ent of the Court of .irst 1nstance of Ri/al ren%ere% on 2ul3 4( )54(
an% instea% or%erin$ petitioner to vacate respon%ents5 resi%ential lot( to re#ove his
house at his own e6penses an% to pa3 rental fro# +a3 5( )5!.
Plaintiffs Maria de Evangelista and Sergi Evangelista, !" are #t"er and sn,
$t"e EVANGELISTAS, fr s"rt% are t"e !ners f a residential lt locate% at
-u#ilan$ -t.( Tana3( Ri/al( with an area of 27'.78 s9. #s.( assesse% at P'7.77. In
Ma& '()*, t"e EVANGELISTAS +rr!ed fr# FLOREZA t"e a#,nt f P'--.--.
On r a+,t Nve#+er '()*, !it" t"e .nsent f t"e EVANGELISTAS, FLOREZA
..,/ied t"e a+ve residential lt and +,ilt t"eren a ",se f lig"t #aterials
$+arng0 +arng% !it",t an& agree#ent as t /a&#ent fr t"e ,se f said
residential lt !ing t t"e fa.t t"at t"e EVANGELISTAS "as t"en a standing lan
f P'--.-- in favr f FLOREZA.
On t"e fll!ing dates, t"e EVANGELISTAS again +rr!ed the in%icate% a#ounts:
-epte#&er !( )'! ; P77.77<
Au$ust 4( )'4 ; P277(77<
2anuar3 37( )') ;
April ( )') ; P'7.77(
or a ttal f P3)-.-- in.l,ding t"e first lan.
T"e last t"ree ite#s are eviden.ed +& /rivate d.,#ents stating t"at t"e
residential lt stands as se.,rit& t"erefr and t"at t"e a#,nts .vered
t"ere,nder are /a&a+le !it"in si4 &ears fr# date, !it",t #entin f interest.
T"e d.,#ent e4e.,ted n Se/te#+er '5, '()5 stated s/e.ifi.all& t"at t"e lan
!as !it",t interest *walan$ anu#an$ patu&o.*
On 6an,ar& '-, '()(, FLOREZA de#lis"ed t"is ",se f lig"t #aterials and in its
/la.e .nstr,.ted ne f strng #aterials assessed in "is na#e at P',)'-.--
,nder Ta4 De.laratin N. )))7. FLOREZA /aid n rental as +efre.
On A,g,st ', '()(, t"e EVANGELISTAS, fr and in .nsideratin f P',---.--
re/resenting t"e ttal ,tstanding lan f P3)-.-- /l,s P15-.-- in .as", sld t"eir
residential lt t FLOREZA, !it" a rig"t t re/,r."ase !it"in a /erid f 5 &ears
fr# date, r ,/ t A,g,st ', '(**, as eviden.ed +& a ntarial d.,#ent,
registered ,nder A.t 22)) n De.e#+er 5, '()(, as Ins.ri/tin N. 1')3.
On 6an,ar& 1, '(**, r seven #nt"s +efre t"e e4/ir& f t"e re/,r."ase /erid,
t"e EVANGELISTAS /aid in f,ll t"e re/,r."ase /ri.e f P',---.--.
On A/ril 1*, '(*5, t"e EVANGELISTAS, t"r,g" t"eir .,nsel, !rte FLOREZA a
as8ing "i# t va.ate t"e /re#ises as t"e& !anted t #a8e ,se f t"eir
residential lt +esides t"e fa.t t"at FLOREZA "ad alread& +een given +& t"e#
#re t"an ne &ear !it"in !"i." t #ve "is ",se t ant"er site. On Ma& ),
'(*5, t"e EVANGELISTAS #ade a fr#al !ritten de#and t va.ate, !it"in five
da&s fr# nti.e, e4/laining t"at t"e& "ad alread& f,ll& /aid t"e .nsideratin fr
t"e re/,r."ase f t"e lt.
FLOREZA ref,sed t va.ate ,nless "e !as first
rei#+,rsed t"e val,e f "is ",se. 9en.e, t"e filing f t"is :#/laint n Ma& '7,
'(*5 +& t"e EVANGELISTAS.
T"e EVANGELISTAS /ra&ed t"at: " the3 &e %eclare% the owners of the house of
stron$ #aterials &uilt &3 .=>R,?A on their resi%ential lot( without pa3#ent of in%e#nit3<
or( in the alternative to or%er .=>R,?A to re#ove sai% house< 2" that .=>R,?A pa3
the# the su# of P7.77 per #onth as the reasona&le value for the use an% occupation
of the sa#e fro# 2anuar3 2( )55 (the %ate the repurchase price was pai%" until
.=>R,?A re#oves the house an% %elivers the lot to the#< an% 3" to %eclare the
transaction &etween the# an% .=>R,?A as one of #ort$a$e an% not of pacto de retro.
In "is Ans!er, FLOREZA a%#itte% the repurchase &ut controverte% &3 statin$ that he
woul% e6ecute a %ee% of repurchase an% leave the pre#ises upon pa3#ent to hi# of
the reasona&le value of the house worth P4(777.77.
1n a De.isin %ate% 2ul3 4( )54( the :,rt f First Instan.e f Ri;al opine% that the
9uestion of whether the transaction &etween the parties is one of #ort$a$e or pacto de
retro is no lon$er #aterial as the in%e&te%ness of P(777.77 of the ,@ANG,=1-TA- to
.=>R,?A ha% alrea%3 &een full3 pai%. An%( appl3in$ Article ''8 of the Civil Co%e(
ren%ere% a %ecision %ispositivel3 %ecreein$:
.>R A== TA, .>R,G>1NG C>N-1D,RAT1>N-( the Court here&3
ren%ers 0u%$#ent granting t"e /laintiffs t"e rig"t t ele.t, as !ners
f t"e land, t /,r."ase t"e ",se +,ilt, n t"e said lt in <,estin
+& t"e defendant fr P1,*-- r t sell t"eir said land t e defendant
fr P',*--. In t"e event t"at t"e /laintiffs s"all de.ide nt t
/,r."ase t"e ",se in <,estin t"e defendant s",ld +e all!ed t
re#ain in /laintiffs= /re#ises +&, /a&ing a #nt"l& rental f P'-.--
!"i." is t"e reasna+le val,e fr t"e ,se f t"e sa#e /er #nt" as
alleged +& /laintiffs in t"eir .#/laint. T"e :,rt als rders t"e
defendant t /a& a #nt"l& rental f P'-.-- fr t"e ,se f t"e land in
<,estin fr# Ma& '7, '(*5, t"e date f t"e .##en.e#ent f t"is
a.tin. The counterclai# of the %efen%ant is here&3 or%ere% %is#isse%.
Bithout pronounce#ent as to costs.
-> >RD,R,D.
Coth parties appeale% to the Court of Appeals.
>n Nove#&er '( )!5( the :,rt f A//eals .n.l,ded t"at Arti.le ))7 f t"e :ivil
:de, supra, !as ina//li.a+le> t"at FLOREZA !as nt entitled t rei#+,rse#ent
fr "is ",se +,t t"at "e .,ld re#ve t"e sa#e at "is e4/ense< an% accor%in$l3
ren%ere% 0u%$#ent thus:
BA,R,.>R,( 0u%$#ent is here&3 ren%ere%: (" a%0u%$in$ the %efen%ant-
appellant +ariano .lore/a to vacate plaintiffs5 resi%ential lot %escri&e% in
the co#plaint an% to pa3 rental of P7.77 a #onth fro# +a3 5( )5!( until
he (%efen%ant" shall have vacate% the pre#ises< (2" or%erin$ %efen%ant to
re#ove his house fro# the lan% in 9uestion within 37 %a3s fro# the ti#e
this %ecision &eco#es final an% e6ecutor3< (3" or%erin$ the Re$ister of
Dee%s of Ri/al to cancel inscription No. 2'4( Pa$e 27( @ol. 3!( in the
Re$istration CooD un%er Act 33'' upon pa3#ent of his lawful fees< an% ('"
ta6in$ the costs in &oth instances a$ainst %efen%ant-appellant +ariano
9en.e, t"is Petitin fr Revie! n certiorari +& FLOREZA, see8ing a reversal f
t"e afrestated ?,dg#ent and as.ri+ing t"e fll!ing errrs@
" That the Court of Appeals erre% in hol%in$ that petitioner .lore/a was a
&uil%er in &a% faith without liDewise hol%in$ that respon%ents as owners of
the lan% in %ispute( were liDewise in &a% faith an% therefore &oth parties
shoul% in accor%ance with Art. '53 of the New Civil Co%e &e consi%ere%
as havin$ acte% in $oo% faith.
2" That the Court of Appeals erre% in co#pletel3 i$norin$ the issue raise%
on appeal as to whether or not respon%ents as owners of the 9uestione%
lot( were in &a% faith in the sense that the3 ha% Dnowle%$e of an%
ac9uisece% to the construction of the house of petitioner on their lot.
3" That the Court of Appeals erre% in not appl3in$ Art. ''8 of the New Civil
Co%e in the a%0u%ication of the ri$hts of petitioner an% respon%ent.
'" That the Court of Appeals erre% in %eclarin$ that petitioner is not
entitle% to rei#&urse#ent for the value of his house an% that he shoul%
instea% re#ove the sa#e at his e6pense.
5" That the Court of Appeals erre% in a%0u%$in$ petitioner to vacate
respon%ents5 lot in 9uestion an% to pa3 rentals co##encin$ fro# +a3 5(
)5!( until he shall have vacate% the pre#ises( notwithstan%in$ that
petitioner is entitle% un%er Arts. ''8 an% 5'! of the New Civil Co%e( to
retention without pa3#ent of rental while the correspon%in$ in%e#nit3 of
his house ha% not &een pai%.
!" That the Court of Appeals erre% in ta6in$ costs a$ainst petitioner.
4" That the Court of Appeals erre% in not awar%in$ petitioner5s
D,ring t"e /enden.& f t"is a//eal, /etitiner Maria D. de Evangelista died and
!as rdered s,+stit,ted +& "er sn, /etitiner Sergi, as "er legal re/resentative,
in a Resl,tin dated Ma& '), '(35.
On O.t+er 1-, '(37. t"e EVANGELISTAS filed a Mtin t Dis#iss stating t"at
FLOREZA "ad sin.e died and t"at "is "eirs "ad vl,ntaril& va.ated t"e residential
lt in <,estin. T"e date FLOREZA /assed a!a& and t"e date "is "eirs "ad
vl,ntaril& va.ated t"e /r/ert& "as nt +een stated. Re<,ired t .##ent,
A/etitiner $re/resented +& "is "eirs%A, t"r,g" .,nsel, .nfir#ed "is deat" and
t"e re#val f t"e ",se and #anifested t"at t"ere+& t"e <,estin f
rei#+,rse#ent "ad #t and a.ade#i.. 9e +?e.ted t t"e dis#issal f t"e .ase,
"!ever, n t"e gr,nd t"at t"e iss,e f rentals still /ends. >n 2anuar3 2( )87(
co#pl3in$ with a Resolution of 5his Court( the ,@ANG,=1-TA- clarifie% that the
%is#issal the3 were pra3in$ for was not of the entire case &ut onl3 of this Petition for
Review on Certiorari.
Be are nt in agree#ent t"at t"e <,estin f rei#+,rse#ent f t"e val,e f t"e
i#/rve#ent ere.ted n t"e s,+?e.t /r/ert& "as +e.#e #t. Petitiner=s rig"t
f retentin f s,+?e.t /r/ert& ,ntil "e is rei#+,rsed fr t"e val,e f "is ",se,
as "e "ad de#anded, is ine4tri.a+l& lin8ed !it" t"e <,estin f rentals. Fr if
/etitiner "as t"e rig"t t inde#nit&, "e "as t"e rig"t f retentin and n rentals
need +e /aid. :nversel&, if n rig"t f retentin e4ists, da#ages in t"e fr# f
rentals fr t"e .ntin,ed ,se and ..,/atin f t"e /r/ert& s",ld +e all!ed.
Be ,/"ld t"e :,rt f A//eals in its .n.l,sin t"at Arti.le ))7 f t"e :ivil :de
is ina//li.a+le t t"e fa.t,al #ilie, "erein. Said .dal /rvisin a//lies nl&
!"en t"e +,ilder, /lanter, r s!er +elieves "e "ad t"e rig"t s t +,ild, /lant r
s! +e.a,se "e t"in8s "e !ns t"e land r +elieves "i#self t "ave a .lai# f
In t"is .ase, /etitiner #a8es n /retensins f !ners"i/ !"atsever.
Petitioner conce%es that he was a &uil%er in &a% faith &ut #aintains that5 the
,@ANG,=1-TA- shoul% also &e hel% in &a% faith( so that &oth of the# &ein$ in &a%
faith( Article '53 of the Civil Co%e
shoul% appl3. C& t"e sa#e t8en, "!ever, t"at
Arti.le ))7 f t"e sa#e :de is nt a//li.a+le, neit"er is Arti.le )*2 ,nder t"e
a#+ian.e f t"is .ase.
B,ld /etitiner, as vendee a retro, t"en +e entitled t t"e rig"ts granted iii
Arti.le '5'5 f t"e :ivil :de $Art. '*'7 f t"e ld :de%E To 9uote:
Art. !!. The ven%or cannot avail hi#self of the ri$ht of repurchase
without returnin$ to the ven%ee the price of the sale( an% in a%%ition:
(" The e6penses of the contract( an% an3 other le$iti#ate pa3#ents
#a%e &3 reason of the sale<
(2" The necessar3 an% useful e6penses #a%e on the thin$ sol%.
T"e <,estin again .alls fr a negative ans!er. 1t shoul% &e note% that petitioner %i%
not construct his house as a ven%ee a retro. The house ha% alrea%3 &een constructe%
as far &acD as )') ()'5 for the house of li$ht #aterials" even &efore the pacto de
retro sale in )'). Petitioner incurre% no useful e6pense( therefore( after that sale. The
house was alrea%3 there at the tolerance of the ,@ANG,=1-TA- in consi%eration of the
several loans e6ten%e% to the#. Sin.e /etitiner .annt +e .lassified as a +,ilder in
gd fait" !it"in t"e /,rvie! f Arti.le ))7 f t"e :ivil :de, nr as a vendee a
retro, !" #ade ,sef,l i#/rve#ents d,ring t"e lifeti#e f t"e pacto de retro,
/etitiner "as n rig"t t rei#+,rse#ent f t"e val,e f t"e ",se !"i." "e "ad
ere.ted n t"e residential lt f t"e EVANGELISTAS, #,." less t retentin f t"e
/re#ises ,ntil "e is rei#+,rsed. T"e rig"ts f /etitiner are #re a8in t t"se f
a ,s,fr,.t,ar& !", ,nder Arti.le *3( f t"e :ivil $Art. )73 f t"e ld :de%, #a&
#a8e n t"e /r/ert& ,sef,l i#/rve#ents +,t !it" n rig"t t +e inde#nified
t"erefr. 9e #a&, "!ever, re#ve s,." i#/rve#ents s",ld it +e /ssi+le t
d s !it",t da#age t t"e /r/ert&@ Fr if t"e i#/rve#ents #ade +& t"e
,s,fr,.t,ar& !ere s,+?e.t t inde#nit&, !e !,ld "ave a danger,s and ,n?,st
sit,atin in !"i." t"e ,s,fr,.t,ar& .,ld dis/se f t"e !ner=s f,nds +&
.#/elling "i# t /a& fr i#/rve#ents !"i." /er"a/s "e !,ld nt "ave
Be .#e n! t t"e iss,e f rentals. It is .lear t"at fr# t"e date t"at t"e
rede#/tin /ri.e "ad +een /aid +& t"e EVANGELISTAS n 6an,ar& 1, '(**,
/etitiner=s rig"t t t"e ,se f t"e residential lt !it",t ."arge "ad .eased.
9aving retained t"e /r/ert& alt",g" a rede#/tin "ad +een #ade, "e s",ld +e
"eld lia+le fr da#ages in t"e fr# f rentals fr t"e .ntin,ed ,se f t"e s,+?e.t
residential lt
at t"e rate f P'-.-- #nt"l& fr# 6an,ar& 2, '(**, and nt
#erel& fr# t"e date f de#and n Ma& ), '(*5, as "eld +& t"e :,rt f A//eals,
,ntil t"e ",se !as re#ved and t"e /r/ert& va.ated +& /etitiner r "is "eirs.
BA,R,.>R,( the 0u%$#ent appeale% fro# is here&3 affir#e%( with the #o%ification
that pa3#ent of rentals &3 the heir( of +ariano .lore/a( who are here&3 or%ere%
su&stitute% for hi#( shall co##ence on 2anuar3 3( )55 until the %ate that the
resi%ential lot in 9uestion was vacate%.
Costs a$ainst petitioner.
-> >RD,R,D.