Contract of sale of real property may be extinguished in three modes namely conventional redemption,

equitable mortgage and legal redemption. Common among the three is one of its respective requisites
which is “the parties entered into a contract denominated with a right to repurchase the thing sold.”

These three modes of extinguishment also has its differences. Conventional redemption refers to the
right which the vendor reserves to himself, to reacquire the property sold provided he returns to the
vendee the price of the sale, the expenses of the contract, any other legitimate payments made therefor
and the necessary and useful expenses made on the thing sold (Art. 1616.), and fulfills other stipulations
which may have been agreed upon (De Leon, 2013). The nature of conventional redemption includes: (a)
It is purely contractual; (b) It is an accidental stipulation; (c) It is a real right when registered; (d) It is
potestative; (e) It is a resolutory condition; (f) It is not an obligation but a power or for the vendor ; (g) It
is reserved at the moment of the perfection of the contract; (h) The person entitled to exercise the right
of redemption necessarily is the owner of the property sold and not any third party; and (i) It gives rise
to reciprocal obligation.

On the other hand, equitable mortgage was defined in Matanguihan v. Court of appeals as one which
although lacking in some formality, or form or words, or other requisites demanded by a statute,
nevertheless reveals the intention of the parties to charge real property as security for a debt, and
contains nothing impossible or contrary to law. The contract of sale is presumed to be an equitable
mortgage when: (a) the price of a sale with right of repurchase is unusually inadequate; (b) the seller
remains in possession as lessee or otherwise; (c) upon or after the expiration of the right to repurchase,
another instrument extending the period of redemption or granting a new period is executed; (d) the
buyer retains for himself a part of the purchase price; (e) the seller binds himself to pay the taxes on the
thing sold; or (f) in any other case, it may be fairly inferred that the real intention of the parties is that
the transaction shall secure the payment of a debt or the performance of any other obligation.

Lastly, legal redemption refers to the right to be subrogated, upon the same terms and conditions
stipulated in the contract, in the place of one who acquires a thing by purchase or dation in payment, or
by any other transaction whereby ownership is transmitted by onerous title. Thus, this right is not
available if the transfer of ownership is by gratuitous title (De Leon, 2013).This right may be exercised
by: (a) co-owners of a certain property; and (b) owners of adjoining lands, which are not separated by
brooks, drains, ravines, roads, and other apparent servitudes for the benefit of other estates.