Скачать или смотреть BAR 2025 Civil Law Q.5: Co-ownership and Right of Redemption?

BAR 2025 - CIVIL LAW
Q.5
A, B, and C are co-owners of a three-hectare agricultural land with a fair market value of PHP 9 million or PHP 3 million per hectare. A offered to sell his share to B and C for a total amount of PHP 10 million. B and C declined the offer and asked A to reduce the purchase price to PHP 3 million, the prevailing fair market value of the land per hectare. A refused and instead sold his one-hectare share to X for PHP 10 million. May B and C go to court for the reduction of the purchase price so they can exercise their right of legal redemption? Reason(s).


SUGGESTED ANSWER:
Yes, B and C may go to court and seek a reduction of the purchase price so that they can exercise the right of legal redemption. Under Article 1620 of the Civil Code of the Philippines, co-owners have the right of legal redemption when another co-owner sells their share to a third party, and if the price is grossly excessive, the redemptioner shall pay only a reasonable one.

Here, A sold his one-hectare share to X for PHP 10 million, which is significantly higher than the fair market value of PHP 3 million per hectare. This disparity may be considered grossly excessive, especially since B and C previously offered to buy the same share at the prevailing market rate, B and C’s refusal to match the inflated price does not bar them from redeeming at a just value. Thus, the court may reduce the purchase price to PHP 3 million, allowing B and C to validly exercise their right of legal redemption.

This video is for educational and informational purposes only and does not constitute legal advice. The content presented may not reflect the most current legal standards, answers or interpretations. No guarantee is made regarding the accuracy or completeness of the information.
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