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All Jurisprudence based

0 tracked cards Civil Law and Land Titles and Deeds

Facts: A owner S sells a parcel of land to B. The deed provides: “This sale is subject to a condition that within twelve months from the date of this contract, the buyer shall obtain from the Municipal Treasurer a Real Property Tax Clearance Certificate indicating that all taxes due on the land for the current year have been paid; if the certificate is not issued within the period, ownership shall revert to the seller.” (a) Identify the kind of condition involved and explain how it operates in terms of suspensive vs. resolutory and its effect on title. (b) Classify the condition as potestative or non-potestative, and justify your answer with the governing rule. (c) Suppose the buyer obtains the tax clearance within the period. what is the effect on the conditional clause and on the transfer of title? Conversely, if the tax clearance is not issued within the period, what happens to ownership and to the land title?

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This is a suspensive condition to the transfer of title; the condition is non-potestative because it depends on a government official's action rather than the buyer's will; if the buyer obtains the tax clearance within the period, the transfer becomes unconditional and title passes to the buyer; if the certificate is not issued within the period, ownership reverts to the seller. This is a condition precedent that suspends the transfer but is valid only if the tax clearance is issued; it is non-potestative since it depends on an external government action. This is a suspensive condition; the condition is potestative because the buyer can influence the outcome by ensuring timely payment of taxes; if the clearance is issued, title passes to the buyer, but the rule treating such government actions as potestative is incorrect. This is a condition subsequent; the sale already takes effect, but failure to obtain clearance within the period automatically reverts ownership to the seller.

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