Case Study - Death of a Seller is not a Supervening Matter !

CASE STUDY :

An ancestral property owned by a family with five children is now owned by the two remaining siblings.  One is a widow who lives locally and another who lives abroad and is married with children.  Take note that this is a “paraphernal property” as it was inherited by the two remaining siblings so the spouses have no right to the property !

Sometime July of 2016, the property was put out in the market for sale and in September 2016, an offer to buy was accepted by the two siblings. The transaction will go through a bank loan with an initial downpayment offered.

The sibling who lives abroad has a consularized Special Power of Attorney authorizing the other sibling to negotiate the sale of the property.

Since the other sibling was abroad, it was also requested that the payee of the bank guarantee be made payable to the sibling who lives locally.  The buyer then said he would advise the bank of this request.

A Contract to Sell was entered into sometime November 2016 and a 5% downpayment was given then while awaiting the bank loan.

So the bank assessed the property, did due diligence on the documents and in a few weeks a bank guarantee was made in favor the Sellers ( this was then named to both siblings which was not as agreed upon ).

The bank wants the Special Power of Attorney to specifically say that the sibling living abroad mention that the proceeds be named to the sibling living locally.

On January 5, 2017, a Deed of Absolute Sale was signed simultaneous with the payment of the balance due seller less the bank guarantee. 

On January 6, 2017, the Deed of Absolute Sale was notarized.   On the same day, payments for both Capital Gains Tax and Documentary Stamp Tax were made through the Bureau of Internal Revenue.  

On January 15, 2017, the sibling living abroad passed away.

What happens now ?

Since the Deed of Absolute Sale and Special Power of Attorney ( Consularized ) was made prior to the death of the sibling living abroad, the transaction is consumated already and beyond question.

The Title was issued February 2017 under the Buyer’s name and the mortgage was also annotated at the back of  the new Transfer of Certificate of Title. 

The bank guarantee was encashed.

No other issue occurred thereafter.

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Thank you.

robert

Robert G. Sarmiento Properties

Professional Affiliation :

Philippine Association of Real Estate Boards

Member, City of Taguig Real Estate Board 2016 - 2018

Real Estate Broker’s Association of the Philippines 2000 - 2015

President, Greenhills Chapter 2008, 2009

Philippine Association of Real Estate Boards

San Juan Mandaluyong Chapter 1998 -1999

PRC # 6569

PRC Lecturer’s License # 0294

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robert
Robert G. Sarmiento Properties

Professional Affiliation :

Philippine Association of Real Estate Boards

Member, City of Taguig Real Estate Board 2016, 2017

Real Estate Broker’s Association of the Philippines

President, Greenhills Chapter 2008, 2009

Philippine Association of Real Estate Boards 2000-2015

San Juan Mandaluyong Chapter 1998, 1999

PRC # 6569

Lecturer’s License # 0294

02 5148481 ( direct line )

+ 632 5536051 ( trunkline )

+ 632 4781316 ( telefax )

+ 632 8561365 ( line 3 )

+ 632 8041701 ( line 4 )

+ 63 917 5364829 ( globe )

Email : roberts@surfshop.net.ph

Website : 
www.robertgsarmiento.com

Website: http://condosphil.wordpress.com

Website: www.philippinecommercialproperties.com

Website: http://philippinewarehouses.wordpress.com

Website: http://philippineoffices.wordpress.com

Website: http://philippinetownhouse.wordpress.com
 

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