(Question XII, Civil Law, 2017 Bar Exam)
Krystal owns a parcel of land covered by TCT No. 12345 in Angeles City. Due to severe financial constraints, Krystal was forced to sell the property to RBP Corporation, a foreign corporation based in South Korea. Subsequently, RBP Corporation sold the property to Gloria, one of its most valued clients.
Wanting her property back, Krystal, learning of the transfer of the property from RBP Corporation to Gloria, sued both of them in the Regional Trial Court (RTC) for annulment of sale and for reconveyance. She alleged that the sale by RBP Corporation to Gloria was void because RBP Corporation was a foreign corporation prohibited by the Constitution from acquiring and owning lands in the Philippines.
Will Krystal’s suit for annulment of sale and reconveyance prosper? Explain your answer. (4%)
Under jurisprudence, if land is invalidly transferred to an alien who subsequently becomes a citizen or transfers it to a citizen, the flaw in the original transaction is considered cured and the title of the transferee is rendered valid. Rule
In the case at bar, the foreign company, RBP Corporation, subsequently sold the property to Gloria, who is presumably a Filipino citizen. This subsequent sale cured the invalidity of the sale between Krystal and RBP Corporation. Apply
Thus, Krystal’s suit for annulment of sale and reconveyance will not prosper. Conclusion
(Notice: The suggested answers simulate those that a bar examinee may provide, and thus specific citations are not provided. Notwithstanding, in the reviewers, the bar exam question is answered under the appropriate topic which discusses the concepts and principles, as well as provide for specific citations. Accordingly, please refer to it on the reviewer or in the Library.)
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