Navigating Conditional Land Donations: When Can a Donor Sell Property Before Conditions Are Met?

TLDR: This case clarifies that while a donor loses ownership upon a conditional donation of land, they retain an inchoate right. If the condition for the donation isn’t met, the land reverts back to the donor. Importantly, a sale made by the donor *before* the condition fails but *after* the donation is perfected can be valid. Upon reversion, the donor’s title passes to the buyer, solidifying the sale. This highlights the importance of understanding conditional donations and reversion clauses in Philippine property law.

G.R. No. 126444, December 04, 1998

INTRODUCTION

Imagine a family donating land to a municipality with the hopeful vision of a new high school benefiting their community. Years pass, the school never materializes, and in the interim, the original donor, believing the land might revert, sells it. This scenario, seemingly straightforward, plunges into complex legal questions about ownership, conditional donations, and the validity of sales. The case of Quijada vs. Court of Appeals unravels these intricacies, providing crucial insights into Philippine property law, particularly concerning donations with resolutory conditions.

At the heart of this case lies a parcel of land in Agusan del Sur, originally owned by Trinidad Quijada. In 1956, Trinidad, along with her siblings, conditionally donated this land to the Municipality of Talacogon for the construction of a provincial high school. However, the high school was never built. Before the municipality formally reverted the land back, Trinidad sold portions of it to Regalado Mondejar. Decades later, Trinidad’s heirs sued to reclaim the land, arguing the sale to Mondejar was void because Trinidad no longer owned the property at the time of sale. The Supreme Court, however, sided with Mondejar, setting a significant precedent on the nature of conditional donations and the rights of donors before reversion.

LEGAL CONTEXT: CONDITIONAL DONATIONS AND RESOLUTORY CONDITIONS

Philippine law recognizes donations as a mode of acquiring ownership, as outlined in Article 712 of the Civil Code, which states, “Ownership and other real rights over property are acquired and transmitted by law, by donation…” A donation is perfected when the donor knows of the donee’s acceptance, as stipulated in Article 734 of the Civil Code: “The donation is perfected from the moment the donor knows of the acceptance by the donee.” Upon perfection and acceptance, ownership typically transfers immediately to the donee.

However, donations can be conditional. These conditions can be suspensive (ownership transfers upon fulfillment) or resolutory (ownership transfers immediately but reverts upon non-fulfillment). In Quijada, the donation contained a resolutory condition: the land must be used exclusively for a provincial high school. The deed explicitly stated that if the high school project failed or was discontinued, the land would automatically revert to the donors.

The Supreme Court, citing previous jurisprudence like Central Philippine University v. CA, reiterated that donating land for the construction of a school constitutes a resolutory condition, not suspensive. This distinction is crucial. With a resolutory condition, the Municipality of Talacogon became the owner upon accepting the donation in 1956. Trinidad Quijada, as the donor, retained a right of reversion – an inchoate interest – meaning a potential future right if the condition wasn’t met. Crucially, this inchoate interest, while not full ownership, has legal implications.

Furthermore, the case touches upon Article 1434 of the Civil Code, which addresses sales of property by non-owners: “When a person who is not the owner of a thing sells or alienates and delivers it, and later the seller or grantor acquires title thereto, such title passes by operation of law to the buyer or grantee.” This principle, often termed