TITLE: Spouses Vega vs. SSS, G.R. No.

181672, September 20, 2010

TOPIC: Form of Contracts (Form for Convenience)

PRINCIPLE: Being consensual, a contract of sale is perfected upon the meeting of

minds between the contracting parties. Formal requirements are for the convenience of
the third parties, for the purpose of informing or binding them.

FACTS:

Magdalena owned a piece of a titled land which she mortgaged when she obtained a
loan from Social Security System (SSS). Later, she asked the petitioner Spouses Vega
to assume the loan and buy her a house and lot since she wanted to emigrate.

According to the rules of SSS, the agency does not allow the transfer of members’
mortgaged homes to another person. Thus, Magdalena and Spouses Vega agreed to
enter into a private arrangement where they will execute a deed of assignment of real
property with assumption of mortgage.

Spouses Vega paid Magdalena a total of ₱20,000.00 after she undertook to update the
amortizations before leaving the country. 

However, Magdalena left the country and gave her sister a special power of attorney to
convey the ownership of the property to the Spouses. The Deed of Assignment was lost
when a flood occurred sometime in 1984.

Eventually, Spouses Vega updated the amortization themselves after learning that
Magdalena did not comply with her undertaking.

In a separate action for collection of sum of money filed against Magdalena, she was
ordered to pay the loaned amount from Apex Mortgage and Loans Corporation. Unable
to comply with the order, a writ of execution against Magdalena and her property was
issued.
ISSUE:

Whether or not the Spouses Vega presented adequate proof of Magdalena’s sale of the
subject property to them, making them the rightful owners

RULING:

Yes. The Spouses Vega are the rightful owners, having acquired such right from the
sale of Magdalena of the subject property to them. It can be inferred that the Spouses
Vega took possession of the house and lot in the concept of an owner for more than 10
years until an action for sum of money was filed against Magdalena. In addition, the
circumstances and acts of the spouses – when they paid all the amortizations to the
SSS through their personal check; when they voluntarily insisted in paying the balance
of the loan when SSS wanted to foreclose the property; and absence of any relatives of
Magdalena, or that of the spouses, coming forward to claim the property – sufficiently
proved that there was a conveyance of ownership in favor of the spouses.