Purchasing a land is a wise investment if the transaction is smooth and hassle-free. What if your hard-earned money went down the drain upon discovering that the parcel of land you have purchased was also sold to another buyer? It even gets more complicated as you are no longer allowed to transfer the title of the property in your name because the other buyer already did so. What are the legal implications of these circumstances? It is clear that the property was sold to two buyers with different interests, hence there is a double sale. Article 1544 of the Civil Code states that:
If the same thing should have been sold to different vendees, the ownership shall be transferred to the person who may have first taken possession thereof in good faith, if it should be movable property.
Should it be immovable property, the ownership shall belong to the person acquiring it who in good faith first recorded it in the Registry of Property.
Should there be no inscription, the ownership shall pertain to the person who in good faith was first in possession; and, in the absence thereof, to the person who presents the oldest title, provided there is good faith.
In case of double sale the person who will be considered as the owner of the property will be based on the order of priority:
- the first person to register the sale in good faith;
- the first possessor in good faith;
- the buyer who in good faith presents the oldest title.
There can be cases when you are the first possessor of the property, but the other claimant was the first registrant. While it may appear that the other claimant is the rightful owner of the property, you should take a few factors into consideration. As part of the aforementioned conditions, the person who registers the sale in good faith will be deemed as the property owner. In the event that the other claimant purchased the property even when he/she had full knowledge that it was previously sold to another buyer, the first buyer will be entitled to prove that he/she has a better right to own the property.
If the other claimant who has already registered the property proved that he/she is a registrant in good faith, then he/she has a better right to the property according to Article 1544 of the Civil Code. The seller has legal liability, which gives you the authority to file chargers and demand contract rescission with damages.
