SALE OF

IMMOVABLE
PROPERTY
Group 3
SALE OF IMMOVABLE PROPERTY
Immovable property refers to any piece of land or structure that is permanently
attached to the ground, including buildings and land itself, along with any rights
associated with the ownership of the land, such as mineral rights or easements.
Unlike movable property, which can be transferred physically, immovable property
requires legal processes for its transfer due to its fixed nature. This type of
property is a critical asset in real estate transactions and often represents
significant value and investment.
SALE
Section 54 defines sale as a transfer of ownership in exchange for a price paid or
promised or part-paid and part-promised.

REGISTRATION OF SALE
• As per Section 54, such transfer, in the case of tangible immoveable property
of the value of one hundred rupees and upwards, or in the case of a reversion
or other intangible thing, can be made only by a registered instrument.
• In the case of tangible immoveable property of a value less than one hundred
rupees, such transfer may be made either by a registered instrument or by
delivery of the property.
• Delivery of tangible immoveable property takes place when the seller places
the buyer, or such person as he directs, in possession of the property.
CONTRACT FOR SALE :
• A CONTRACT FOR THE SALE OF
IMMOVABLE PROPERTY IS A CONTRACT
THAT THE SALE OF SUCH PROPERTY
SHALL TAKE PLACE ON TERMS SETTLED
BETWEEN THE PARTIES.
• IT DOES NOT, OF ITSELF, CREATE ANY
INTEREST IN OR CHARGE ON SUCH
PROPERTY.
ESSENTIALS OF VALID SALE
• PARTIES TO SALE
• COMPETENCIES
• SUBJECT MATTER OF SALE
• PRICE OR CONSIDERATION
• CONVEYANCE
PARTIES TO SALE:

In a sale, there must be at least two parties.

The person who transfers his / her property
is known as the transferor / seller / vendor
and the person to whom the property is
transferred is known as the transferee / buyer
/ vendee.
COMPETENCY:
FOR A VALID SALE, BOTH THE BUYER AND SELLER HAVE TO BE
COMPETENT ON THE DATE OF THE SALE:
• The seller must have ownership of the property which he is going to sell.
• The seller must have legal title to it, only then can he sell the property.
• The seller must not be a minor.
• The seller must not be of an unsound mind.
• The seller must not be statutorily incompetent.
• The buyer must be competent to take the ownership of the property.
• The buyer should not be disqualified from buying the immovable property by any law in
force at the time of the sale.
SUBJECT MATTER OF SALE:
It specifically deals with the sale of immovable property. Immovable
property can be tangible or intangible.

• Tangible property is one that can be touched, such as a land, a

house, a tree, things attached to earth, etc., while intangible
property refers to a property that cannot be touched such as a right
of ferry, a right to mortgage, a right of fishery, etc.
 PRICE OR CONSIDERATION:
Price is an essential element of the sale. At the time of the contract of a sale, a price
must be ascertained at which the property is going to be transferred.
• The price can be paid at the time of sale or before the sale in advance or after the
sale. At the same time, it can be paid in a lump sum or in part.

CONVEYANCE:
Section 54 provides two modes for transfer of property
• Delivery of possession
• Registration of sale deed
2 KINDS OF
SALE
 In the tourism and hospitality sector, two prominent kinds of sales are
B2B (Business to Business) and B2C (Business to Consumer) sales.
B2B sales involve transactions between businesses, such as a hotel
offering rooms to a travel agency for its clients. B2C sales, on the other
hand, are direct transactions with the end consumer, like a tourist
booking a hotel room directly. Both sales types are crucial for the
industry, catering to different customer segments and requiring tailored
marketing and service strategies.
B2B SALES (BUSINESS TO BUSINESS):
This involves transactions between two businesses, where one
sells products or services to another for use in the operation of
the latter's business. B2B sales often require a strategic
approach, focusing on building long-term relationships and
understanding the specific needs of the business client.
B2C SALES (BUSINESS TO CONSUMER):
This type involves selling products or services
directly to individual consumers for personal use.
B2C sales strategies focus on appealing to the
emotions and personal needs of consumers, often
requiring extensive marketing efforts to reach a
broad audience.
BESIDES B2B AND B2C, THERE ARE VARIOUS
OTHER SALES TYPES LIKE:
• Inside Sales: Selling remotely via phone, email, or web instead of face-to-face.
• Outside Sales: Involves direct, in-person sales outside the office, commonly
referred to as field sales.
• Inbound Sales: Focuses on attracting customers through content and
interactions that are relevant and helpful, not interruptive.
• Outbound Sales: Proactive outreach to potential customers via cold calls,
emails, and other direct communication methods.
 • Channel Sales: Utilizing third-party entities to sell products, such as
distributors, affiliates, or resellers.
• Direct Sales: Selling directly to consumers without intermediaries.
• Digital Sales: Selling products or services online through digital
channels.
• Physical Sales: Transactions that occur in a physical location like a
retail store or trade show.

Each type of sale has its unique strategies, advantages, and challenges,
and the choice between them depends on the product or service
offered, the target market, and the overall business goals.
TRANSFER OF
OWNERSHIP
LEGAL FRAMEWORK OF TRANSFER OF OWNERSHIP IN
TOURISM AND HOSPITALITY
This may involve contracts, licenses, permits, and other legal
documents that outline the terms of the transfer. Additionally, the
regulatory environment governing such transactions varies from
one jurisdiction to another, adding another layer of complexity to
the process . Therefore, it is essential for business owners in the
tourism and hospitality sector to seek legal guidance to navigate
the intricacies of transfer of ownership effectively.
TYPES OF OWNERSHIP TRANSFERS IN THE TOURISM AND
HOSPITALITY INDUSTRY
Types of ownership transfers in the tourism and hospitality industry can take various
forms, including mergers, acquisitions, and franchising agreements.

• Mergers involve two companies combining to form a new entity, while

acquisitions occur when one company purchases another.
• Franchising agreements allow a business to use another company's brand and
business model in exchange for a fee.

These ownership transfers can have significant implications for the companies
involved, as they can lead to changes in management, branding, and overall business
operations .
FACTORS INFLUENCING TRANSFER OF OWNERSHIP IN
TOURISM AND HOSPITALITY
Factors influencing the transfer of ownership in the tourism and
hospitality industry are diverse and complex.
• One key factor is the economic climate, as fluctuations in the
economy can impact the valuation of tourism and hospitality
businesses and the willingness of buyers to invest.
• Another important factor is regulations and government
policies, which can affect the ease and legality of transferring
ownership of businesses in this sector.
• Additionally, the reputation and brand value of a tourism or
hospitality business can significantly influence the transfer
process, as buyers may be more inclined to acquire businesses
with strong brand recognition and customer loyalty.
• Lastly, technological advancements and market trends play
a crucial role in shaping the transfer of ownership in this
industry, as businesses need to adapt to changing consumer
preferences and technological innovations to remain
competitive in the market.
CHALLENGES AND OPPORTUNITIES IN OWNERSHIP
TRANSFER WITHIN TOURISM AND HOSPITALITY
Challenges and opportunities abound in the transfer of ownership within
the tourism and hospitality industry.
• One of the primary challenges faced by businesses in this sector is
the intricate nature of the ownership transition process, which
involves numerous legal, financial, and operational considerations.
For instance, navigating the complexities of stakeholder
agreements, licensing requirements, and tax implications can be
daunting for owners looking to transfer their businesses.
 • However, amidst these challenges lie opportunities for
growth and innovation. By strategically managing the
ownership transfer process, businesses can attract new
investors, forge strategic partnerships, and capitalize on
emerging trends in the market.
• Furthermore, ownership transfer presents an opportunity for
businesses to reposition themselves in a rapidly evolving
industry landscape by leveraging their unique strengths and
competitive advantages.
RECTO
LAW
 RECTO LAW (R.A. NO. 6552)
"Realty Installment Buyer Protection Act"
INTRODUCTION:
• Also known as “Installment sales Law”
• Authored by Senator Claro M. Recto in Dec. 1933
• inspired by the case of “Bachrach Motor vs. Pablo Milan
(1933)”
• the Intellectual Property Code of the Philippines, primarily
deals with intellectual property rights in the Philippines.
Recto Law applies only to:

• Sale of personal property where price is payable

in several installments; and
• Lease of personal property with an option to
buy, wherein the lessor has deprived the lessee
of the possession or enjoyment of the thing.
COVERAGE: The law covers various types of intellectual property, including but
not limited to
• Administration: The Intellectual Property Office of the
Philippines (IPOPHL) is tasked with administering and
implementing the provisions of the law.

• Patents: Provides protection for inventions that are

novel, involve an inventive step, and are industrially
applicable.
• Industrial Designs: Protects the visual design of
objects that are not purely utilitarian.

• Geographical Indications: Protects products that have a

specific geographical origin and possess qualities,
reputation, or characteristics inherent to that location.
• Trademarks: Protects distinctive signs that identify certain
goods or services as those produced or provided by a
specific person or enterprise.

• Copyrights: Grants authors, composers, artists, and other

creators rights over their literary and artistic creations.
• Industrial Designs: Protects the visual design of objects
that are not purely utilitarian.
• Geographical Indications: Protects products that have a
specific geographical origin and possess qualities,
reputation, or characteristics inherent to that location.
• Integrated Circuits: Offers protection to the layout designs
of integrated circuits used in electronic devices.
• Enforcement: The law provides mechanisms for
enforcing intellectual property rights, including civil
and administrative actions against infringers.

• Penalties: Establishes penalties for various offenses

related to the infringement of intellectual property
rights, including imprisonment and fines.
PURPOSE OF RECTO LAW
To prevent the potential abuse committed in
connection with the foreclosure of chattel
mortgages. This occurs when the mortgagee-
creditor (seller) foreclose the chattel mortgage and
bought it in a lower price then collects the
deficiency from the mortgagor-debtor (buyer).
REQUISITES OF RECTO LAW

• Personal Property
• Price is payable in several installments
• There has been failure to pay two or more
installments
• Chattel mortgage has been executed
 This law aims to protect buyers from
onerous and unfair conditions in real
estate transactions, ensuring that they
are treated fairly and have avenues for
recourse in case of financial difficulty.
THANK
YOU
SHORT
QUIZ
 1-2. What are the 2
distinction between sale and
contract sale give atleast 1
each
3-7. What are the
5 essentials of
valid sale?
8. What is the
meaning of
immovable
property?
9-10. Give the
2 kinds of sale
 11-12. What are the 2 types of
ownership transfer in tourism and
hospitality industry?
 13-16. What are the 4 factors
influencing transfer of ownership
in tourism and hospitality
industry?
 17-20. What are
the 4 requisites of
Recto Law?