27-06-2025
SC: Verbal sale of land valid if fully or partially carried out
A land sale made through a verbal or written agreement can be valid and binding as long as it has been partly or fully carried out, the Supreme Court (SC) has ruled.
In an 18-page decision, the SC Third Division upheld the verbal sale of land between a man and his nephew.
The Court said it found the sale to be valid even without a written contract because the nephew had already received the land title, moved into the property, and improved it.
The case stemmed from the reclamation case filed by the man's children, who were initially unaware of the property.
According to the court, the man's children only discovered the property in 2007 when they received a notice to pay real estate taxes. They found that their cousin was living there.
For his part, the nephew said he bought the land from his uncle when he was still alive. After his uncle's death, the nephew kept paying installments to his uncle's brother.
He also presented the land title as proof.
Both the regional trial court and the Court of Appeals ruled in favor of the children while the SC reversed their decisions.
"Under the Civil Code, a sale of land must be in writing to be enforced in court. This written document serves as proof that both parties agreed to the sale. However, the sale is still considered valid even without a written contract if it has already been fully or partly carried out. In such cases, a verbal agreement can still be legally binding, and witnesses may be allowed to testify to prove that the sale happened," the SC said.
The SC added that taking possession of the land and making improvements on it are strong signs that a verbal sale had already taken place. Thus, buyers who are already living on the property can use the verbal agreement as a legal basis for their possession, even without a written contract, it added.
The decision, penned by Associate Justice Samuel Gaerlan, was promulgated in April 2025 and made public in June 2025.—LDF, GMA Integrated News
