SALES ART. 1548-1560 – Subsection 1.

Warranty in case of eviction

Article 1548. Eviction shall take place whenever by a final judgment

based on a right prior to the sale or an act imputable to the vendor,
the vendee is deprived of the whole or of a part of the thing
purchased.
The vendor shall answer for the eviction even though nothing has
been said in the contract on the subject.
The contracting parties, however, may increase, diminish, or
suppress this legal obligation of the vendor. (1475a)

1) EVICTION – it may be defined as the judicial process, whereby the

vendee is deprived of the whole or the part of the thing purchased, by
virtue of a final judgment based on a right prior to the sale or an act
imputable to the vendor.

2) Elements of Warranty against eviction:

a) The vendee is deprived of the whole or part of the thing
purchased;
b) The deprivation is by virtue of a final judgment
c) The judgment is based on a right prior to the sale or an act
imputable to the vendor;
d) The vendor is summoned in the suit for eviction, and made a
co-defendant at the instance of the vendee;
e) There is no waiver on the part of the vendee

3) In the absence of any of these requisites in #2, a breach of

warranty against eviction in Art. 1547 cannot be declared.

4) Types of eviction
Eviction may be partial or total. It is total when the vendee is
deprived of the whole thing purchased. It is partial when the vendee
is deprived of a) the part of the thing purchased; b) some items that
were jointly sold with other items; c) if the immovable sold should be
encumbered with any non-apparent burden or servitude, of such a
nature that it must be presumed that the vendee would have not
acquired it had he been aware thereof.
5) Types of Property Sold
The warranty against eviction is applicable to all classes of
property, except:
a) In the sale of inheritance, where the vendor is only to answer
for his character as an heir and not to all the things that comprise the
inheritance
b) In the sale for a lump sum of the whole of certain rights,
rents, or products, where the vendor is not obliged to warrant each of
the various parts of which it may be composed, except in the case of
eviction for the whole or part of greater value of the things sold.

6) Trespass in fact vs Disturbance in law

Trespass in fact does not give rise to the application of the
doctrine of eviction, such as when there is a mere act of trespass
when the trespasser claims no right whatever.
The disturbance in law is the disturbance referred to in the case
of eviction, which requires that a person go to the courts of justice
claiming the thing sold, or a part thereof, and invoking reasons. If the
final judgment is rendered and the vendee is deprived of the whole of
part of the thing sold, the doctrine of eviction becomes applicable.

7) Yes, the vendor’s liability is waivable. It is not an essential element

of a contract of sale, hence it may increased, diminished, or
suppressed by agreement of the parties. The waiver may be
stipulated or agreed upon unless such waiver is contrary to law,
public policy, morals, or good customs, or prejudicial to third persons
with a right recognized by law. Exempting the vendor from the
obligation is also void when the vendor acted in bad faith.

8) Eviction and warranty.

Eviction and warranty completes each other but have different
meanings. Eviction relates to a state of fact, while warranty is to a
legal concept. Eviction is the act by which the vendee is deprived of
the whole or part of the thing sold, by final judgment; and after such
state of fact comes the warranty that the vendor is obligated to
remedy the damage suffered by the vendee who is deprived of the
thing acquired by virtue of a final judgment.
Article 1549. The vendee need not appeal from the decision in order
that the vendor may become liable for eviction. (n)

1) The vendee’s right against the vendor is not lost because the
vendee did not appeal. The requirement of the law is satisfied upon
the judgment becoming final. There is no requirement that the parties
shall have taken all remedies. The final judgment may be based on a
compromise agreement among the party litigants.

Article 1550. When adverse possession had been commenced

before the sale but the prescriptive period is completed after the
transfer, the vendor shall not be liable for eviction. (n)

1) What is prescription?

By prescription, one acquires ownership and other real rights through

the lapse of time in the manner and under the conditions prescribed
by law.

Note: Completed before sale – Yes; Completed after sale – NO, the
vendee could easily interrupt the running of the prescriptive period by
bringing the necessary action.

Article 1551. If the property is sold for nonpayment of taxes due and
not made known to the vendee before the sale, the vendor is liable
for eviction. (n)

1) Deprivation of the vendee due to nonpayment of taxes due from

the vendor, the vendor is liable for eviction for an act imputable to
him.
2) Note: It is required that at the time of the sale, the non-payment of
taxes was not known to the vendee
Article 1552. The judgment debtor is also responsible for eviction in
judicial sales, unless it is otherwise decreed in the judgment. (n)

1) Implied warranty does not apply to a sheriff who sells by virtue of

authority in law.
2) BUT the judgment debtor is responsible for eviction and hidden
defects, even in judicial sales, unless otherwise decreed in the
judgment.
3) Yes, entitled to the eviction because judgment debtor had no right
to the property sold, the purchaser is entitled to recover the price paid
with interest from the judgment debtor
4) If the sale was effected by the judgment creditor, the latter should
not be permitted to retain the proceeds of the sale, at the expense of
the purchaser

Article 1553. Any stipulation exempting the vendor from the

obligation to answer for eviction shall be void, if he acted in bad faith.
(1476)

1) There are two bad faith: either the vendor or the vendee
2) Bad faith consists in knowing beforehand at the time of the sale, of
the presence of the fact giving rise to eviction and its possible
consequence
3) If vendee also has bad faith, he cannot claim that the vendor has
warranted his legal and peaceful possession of the property sold. Not
entitled to the warranty against eviction, nor is he entitled to recover
damages

Article 1554. If the vendee has renounced the right to warranty in

case of eviction, and eviction should take place, the vendor shall only
pay the value which the thing sold had at the time of the eviction.
Should the vendee have made the waiver with knowledge of the risks
of eviction and assumed its consequences, the vendor shall not be
liable. (1477)

1) There are two kinds of waiver: consciente (simple) and

intencionada (calificada). Consciente is the waiver made by the
vendee without the knowledge and assumption of risks of eviction.
Intencionada, on the other hand, is the waiver made by the vendee
with the knowledge of the risks of eviction and the assumption of its
consequences.

2) Effects of waiver:
a) Consciente – Vendor shall pay only the value which the thing sold
had at the time of eviction. This is a case of solution indebiti;
Deprived of benefits 2, 3, 4, and 5 of Art. 1555.
b) Intencionada – Vendor is exempted from the obligation to answer
for eviction, provided he did not act in bad faith.

3) Presumption is consciente, until the contrary is proven. In

intencionada besides the act of waiver

Article 1555. When the warranty has been agreed upon or nothing
has been stipulated on this point, in case eviction occurs, the vendee
shall have the right to demand of the vendor:
(1) The return of the value which the thing sold had at the time of the
eviction, be it greater or less than the price of the sale;
(2) The income or fruits, if he has been ordered to deliver them to the
party who won the suit against him;
(3) The costs of the suit which caused the eviction, and, in a proper
case, those of the suit brought against the vendor for the warranty;
(4) The expenses of the contract, if the vendee has paid them;
(5) The damages and interests, and ornamental expenses, if the sale
was made in bad faith. (1478)

What are the rights?

1) The return of the value of the thing sold had at the time of the
eviction, be it greater or less than the price of the sale.
2) The income or fruits, if he had been ordered to deliver them to the
party who won the suit
3) The cost of the suit, which caused the eviction, and in a proper
case, the suit brought against the vendor for the warranty
4) The expenses of the contract, if it was paid by the vendee
5) The damages and interests, and ornamental expenses, if the sale
was made in bad faith.
Article 1556. Should the vendee lose, by reason of the eviction, a
part of the thing sold of such importance, in relation to the whole, that
he would not have bought it without said part, he may demand the
rescission of the contract; but with the obligation to return the thing
without other encumbrances that those which it had when he
acquired it.
He may exercise this right of action, instead of enforcing the vendor's
liability for eviction.
The same rule shall be observed when two or more things have been
jointly sold for a lump sum, or for a separate price for each of them, if
it should clearly appear that the vendee would not have purchased
one without the other. (1479a)

1) Alternative Rights of Vendee in case of partial eviction:

a) enforce the vendor’s liability for eviction
b) demand rescission of the contract

2) When applicable:
a) Vendee is deprived of a part of the thing sold and such part is of
such importance to the whole that he would not have brought the
thing without such part
b) When two or more things are jointly sold whether for a lump sum or
for separate price for each, and the vendee would not have
purchased one without the other

3) Remedy of rescission is not applicable in case of total eviction

Article 1557. The warranty cannot be enforced until a final judgment

has been rendered, whereby the vendee loses the thing acquired or a
part thereof. (1480)

1) Two essential elements for the enforcement of the warranty

in case of eviction: a) Deprivation of the part or whole of the thing
purchased; b) By virtue of a final judgment (note: rendered by
competent authority)
Article 1558. The vendor shall not be obliged to make good the
proper warranty, unless he is summoned in the suit for eviction at the
instance of the vendee. (1481a)

1) Before a vendor may be legally liable for eviction, he must be

summoned in the suit for eviction at the instance of the vendee

2) Means that the vendor should be made party to the suit either by
way of asking that the former be made co-defendant or filing of a
third-party complaint against said vendor

3) Why? Because it is there that the vendor shall defend the legal and
peaceful possession of the vendee, for which he is responsible and
not in the action to enforce the warranty itself

4) Why the law? Opportunity to defend the title know circrumstances,

and defend validity of the sale

Article 1559. The defendant vendee shall ask, within the time fixed in
the Rules of Court for answering the complaint, that the vendor be
made a co-defendant. (1482a)

1) Vendor to be made co-defendant

2) He should ask the court within the time allowed him to answer
and that the vendor be made a co-defendant

Article 1560. If the immovable sold should be encumbered with any

non-apparent burden or servitude, not mentioned in the agreement,
of such a nature that it must be presumed that the vendee would not
have acquired it had he been aware thereof, he may ask for the
rescission of the contract, unless he should prefer the appropriate
indemnity. Neither right can be exercised if the non-apparent burden
or servitude is recorded in the Registry of Property, unless there is an
express warranty that the thing is free from all burdens and
encumbrances.
Within one year, to be computed from the execution of the deed, the
vendee may bring the action for rescission, or sue for damages.
One year having elapsed, he may only bring an action for damages
within an equal period, to be counted from the date on which he
discovered the burden or servitude. (1483a)

1) Note: although not total or partial, the vendee may still rescind the
contract or ask for indemnity, if the thing sold should be encumbered
with any non-apparent burden or servitude, not mentioned in the
agreement, of such nature that a vendee would have not acquired it
had he been aware thereof

2) The lack of knowledge on the part of the vendor is not a defense

3) Servitude or easement is an encumbrance imposed upon an

immovable for the benefit of another immovable belonging to different
owner

4) Right cannot be exercised:

a) If the burden or servitude is apparent, made known, and
continually kept in view by external signs, that reveal the use and
enjoyment of the same
b) If the non-apparent servitude is registered
c) If the vendee had knowledge of the encumbrance, whether
registered or not

4) When action must be brought:

Action for damages or rescission must be brought within one year
from the execution of the sale. If the period had elapsed, the vendee
may only bring an action for damages within one year from the date
of the discovery of the non-apparent burden or servitude.

5) Intention: 1556 vs 1560: BASTA CLEARLY APPEAR THE

INTENTION
1556: clear intention not ave

that the circumstances indicate a presumption that a buyer would not

have purchased the immovable with the encumbrance.