Dear Atty. Gab,

Musta Atty! My name is Maria Hizon and I am writing to you with a heavy heart and a confused mind. My parents recently passed away, leaving behind a piece of land in Batangas. Before they died, they verbally agreed that the land would be divided equally among my siblings and me. However, without informing us, my eldest brother sold the entire property to a big company. He claims he had the right to do so because he was the one who processed the tax declarations after our parents passed.

I am devastated because that land was supposed to be my inheritance and a source of security for my family. I feel betrayed by my brother and worried that I have no legal recourse since the agreement was only verbal and he managed to sell the land without our consent. The buyer seems to know all about this arrangement but is continuing with the sale. Do I have any rights here? Can I stop the sale or get my fair share of the proceeds? I really hope you can shed some light on this situation.

Thank you in advance for your guidance.

Sincerely,
Maria Hizon

Dear Maria,

I understand your distress regarding the sale of your family’s land without your consent. The key issue here revolves around the concept of ownership and the potential existence of a trust, express or implied, concerning the property. Let’s clarify the legal aspects related to your situation.

Protecting Your Inheritance: Understanding Ownership and Trust

Based on your account, the property was intended to be shared among you and your siblings. The absence of a formal, written agreement does not necessarily negate your rights, particularly if you can demonstrate that a verbal agreement or understanding existed regarding the shared ownership. In situations where property is transferred with the understanding that it be held for the benefit of others, Philippine law recognizes the concept of a trust. A trust can be either express or implied.

An express trust is created by the direct and positive acts of the parties, by some writing or deed, or will, or by words either expressly or impliedly evincing an intention to create a trust. However, in the absence of such express documentation, an implied trust may be argued. Implied trusts, also known as constructive trusts, are created by operation of law.

Specifically, the law recognizes that:

“In the event of any sale, notice and details shall be given to all the children who must consent to the sale and that all amounts paid for the property shall be shared equally by the children…”

If such conditions were not complied with, a violation occurred, and it may give rise to a cause of action.

Moreover, the good faith of the buyer is essential, if the buyer knew of your claim of ownership.

Belle Corporation was likewise in bad faith when, despite having had notice of plaintiffs’ claim over the Paliparan Property on 19 January 1998 when it was impleaded as a co-defendant in this civil case, Belle Corporation still entered into a Deed of Absolute Sale with defendant Spouses Alleje and NELFRED on 24 June 1998. Thus, Belle Corporation finalized its purchase of the subject property from its co-defendants with knowledge that some other persons are claiming and actually own the same.

If the buyer purchased the property knowing that you were claiming interest in it, it would be considered that they bought in bad faith. The court would then need to make a determination.

As the court stated, the determination of whether or not a party is guilty of bad faith cannot be made in a mere motion to dismiss:

An issue that requires the contravention of the allegations of the complaint, as well as the full ventilation, in effect, of the main merits of the case, should not be within the province of a mere motion to dismiss.

Therefore, bad faith will need to be proven with clear and convincing evidence.

Practical Advice for Your Situation

• Gather Evidence: Collect any communication (text messages, emails, letters) that supports your claim of the agreement to share the property equally.
• Consult a Lawyer Immediately: Time is of the essence. A lawyer can advise you on the best course of action and help you file the necessary legal proceedings.
• File a Lis Pendens: Your lawyer may advise you to file a notice of lis pendens with the Registry of Deeds. This will alert potential buyers about the ongoing legal dispute.
• Explore Mediation: Consider exploring mediation with your brother to reach an amicable settlement outside of court.
• Assess the Buyer’s Knowledge: Determine whether the company that bought the land was aware of your claim to the property. This could affect the validity of the sale.

Hope this helps!

Sincerely,
Atty. Gabriel Ablola

For more specific legal assistance related to your situation, please contact me through gaboogle.com or via email at connect@gaboogle.com.

Disclaimer: This correspondence is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please schedule a formal consultation.