Contract to sell

"Upon full payment of the contract
price, HRI became rightfully
entitled to the execution of a Deed
of Absolute Sale in its favor.

A contract to sell has been defined as "a bilateral contract whereby the prospective seller, while expressly reserving the ownership of the subject property despite delivery thereof to the prospective buyer, binds itself to sell the property exclusively to the prospective buyer upon fulfillment of the condition agreed upon, that is, full payment of the purchase price." In a contract to sell, "ownership is retained by the seller and is not to pass until the full payment of the price."20 Consequently, once the buyer has paid the purchase price in full, the contract to sell is converted to an absolute sale and the buyer has the right to demand the execution of a Deed of Absolute Sale in its favor.

Here, there is no question that HRI has paid in full the contract price in the amount of ₱20,998,400.00. There is no question either that by operation of law, HRI as the buyer has become rightfully entitled to the execution of a Deed of Absolute Sale in its favor."

G.R. No. 231936, November 25, 2020
FIL-ESTATE PROPERTIES, INC., PETITIONER, VS. HERMANA REALTY, INC., RESPONDENT.

https://lawphil.net/judjuris/juri2020/nov2020/gr_231936_2020.html