In Jose Delos Reyes v. Josephine Anne B. Ramnani, the Supreme Court reiterated that the issuance of a final certificate of sale is a mere formality when a debtor fails to redeem property within the prescribed period. This means the purchaser at an execution sale acquires vested rights to the property, and the issuance of the final certificate confirms this title. The Court emphasized that failing to redeem property within the redemption period results in the absolute sale, making the issuance of the final certificate a ministerial duty.

From Auction Block to Absolute Ownership: Examining Redemption Rights

This case revolves around a dispute over a property initially subject to a judgment in favor of Josephine Anne B. Ramnani against Jose Delos Reyes. Following the 1977 decision, a writ of execution was issued, leading to a public auction on June 6, 1978, where Ramnani emerged as the highest bidder for the property covered by Transfer Certificate of Title (TCT) No. 480537. A certificate of sale was then executed in her favor. The certificate of sale was eventually annotated on TCT No. 480537 on March 8, 1990. Crucially, Delos Reyes did not exercise his right to redeem the property within one year from this registration. Years later, Ramnani sought the issuance of a final certificate of sale, which Delos Reyes opposed, arguing prescription and a lack of notice of hearing. The central legal question is whether Ramnani is entitled to the final certificate of sale, given the passage of time and Delos Reyes’ failure to redeem the property.

The Regional Trial Court (RTC) and the Court of Appeals (CA) both ruled in favor of Ramnani, prompting Delos Reyes to elevate the matter to the Supreme Court. The petitioner, Delos Reyes, argued that the motion for the final certificate of sale was defective due to the absence of a notice of hearing. Moreover, he contended that the original 1977 decision could no longer be enforced due to prescription, given that 27 years had elapsed. On the other hand, respondent Ramnani asserted that the motion was non-litigious and that Delos Reyes was not denied due process because he was given an opportunity to be heard. She further maintained that her motion was not barred by prescription, laches, or estoppel since the property had already been levied and sold in 1978, and Delos Reyes failed to redeem it.

The Supreme Court (SC) addressed the core issues, primarily focusing on whether Ramnani was indeed entitled to the final certificate of sale. The SC clarified the interplay between the execution of a judgment and the subsequent steps involved in finalizing the sale of property. The Court emphasized that the execution of the 1977 judgment occurred when the property was levied and sold at public auction in 1978, well within the five-year period prescribed by Section 6, Rule 39 of the Rules of Court. This provision states:

SECTION 6. Execution by motion or by independent action. — A final and executory judgment or order may be executed on motion within five (5) years from the date of its entry. After the lapse of such time, and before it is barred by the statute of limitations, a judgment may be enforced by action. The revived judgment may also be enforced by motion within five (5) years from the date of its entry and thereafter by action before it is barred by the statute of limitations.

Building on this principle, the SC highlighted that Delos Reyes’ failure to redeem the property within the one-year period following the annotation of the certificate of sale effectively foreclosed his right to do so. The Court cited Calacala v. Republic of the Philippines, stating that “the expiration of the one-year redemption period foreclosed petitioner’s right to redeem the subject property and the sale thereby became absolute. The issuance thereafter of a final certificate of sale is a mere formality and confirmation of the title that is already vested in respondent.” Therefore, the issuance of the final certificate of sale was deemed a ministerial duty, confirming Ramnani’s vested title.

Addressing the procedural issue raised by Delos Reyes regarding the lack of notice of hearing, the SC agreed with the CA that the motion for the issuance of the final certificate of sale was a non-litigious motion. The Court explained that while Section 4, Rule 15 of the Rules of Court generally requires a hearing for written motions, exceptions exist for motions that do not prejudice the rights of the adverse party. In this instance, because Delos Reyes had already lost his right to redeem the property, he had no legal basis to oppose the issuance of the final certificate of sale. The Court also noted that Delos Reyes had, in fact, been given an opportunity to oppose the motion and had filed a Comment/Opposition, thus negating any claim of denial of due process.

This case underscores the critical importance of adhering to the prescribed periods for redeeming property sold at execution sales. Once the redemption period expires without the judgment debtor exercising their right, the purchaser’s right to the property becomes absolute. The ministerial nature of issuing the final certificate of sale means that the sheriff has a duty to execute it, thereby finalizing the transfer of ownership. This principle protects the interests of the purchaser and ensures the stability and reliability of execution sales as a means of enforcing judgments. The Supreme Court’s decision reinforces the principle that failing to act within the prescribed legal timeframes can lead to the irreversible loss of property rights.

FAQs

What was the key issue in this case?	The central issue was whether the respondent was entitled to the issuance of a final certificate of sale after the petitioner failed to redeem the property within the prescribed period. The court determined that the respondent was indeed entitled to the certificate, as the petitioner’s redemption rights had been foreclosed.
What is a certificate of sale?	A certificate of sale is a document issued to the highest bidder at an execution sale, evidencing their purchase of the property. It marks the beginning of the redemption period, during which the judgment debtor can reclaim the property.
What does it mean to redeem a property?	Redeeming a property refers to the act of the judgment debtor paying the purchaser the amount of the purchase price, plus interest and any assessments or taxes paid by the purchaser after the purchase, in order to recover ownership of the property. This must be done within a specific period, typically one year from the registration of the certificate of sale.
What happens if the debtor does not redeem the property?	If the judgment debtor fails to redeem the property within the redemption period, their right to redeem is lost, and the purchaser becomes the absolute owner of the property. The issuance of a final certificate of sale then becomes a ministerial duty.
What is a final certificate of sale?	The final certificate of sale is a document issued after the redemption period has expired without the judgment debtor redeeming the property. It confirms the purchaser’s absolute ownership of the property.
Is a motion for the issuance of a final certificate of sale considered a litigious or non-litigious motion?	The court in this case determined that a motion for the issuance of a final certificate of sale is a non-litigious motion. This is because it does not prejudice the rights of the adverse party if the redemption period has already expired.
What is the effect of annotating the certificate of sale on the title?	Annotating the certificate of sale on the title serves as notice to all persons of the sale and the right of redemption. It also starts the running of the one-year redemption period.
What is the prescriptive period for enforcing a judgment?	Under Section 6, Rule 39 of the Rules of Court, a final and executory judgment may be executed on motion within five years from the date of its entry. After that period, it can be enforced by an independent action before it is barred by the statute of limitations, which is typically ten years.

The Supreme Court’s decision in Delos Reyes v. Ramnani serves as a clear reminder of the importance of understanding and complying with the legal timelines associated with property redemption. Failing to redeem property within the allotted time can result in the irreversible loss of ownership, underscoring the need for diligent action and legal counsel. It is crucial for both judgment debtors and purchasers at execution sales to be fully aware of their rights and obligations to avoid potential pitfalls.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: Jose Delos Reyes, G.R. No. 169135, June 18, 2010