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IS AN UN-NOTARIZED DEED OF SALE OF REAL PROPERTY VALID?
Is a Deed of Sale of real property that is NOT notarized valid?
Yes. The deed of sale is considered valid between the parties who executed the deed of sale. It is valid between the buyer and the seller.
It has been settled that a sale of real property, though not consigned in a public instrument or formal writing is, nevertheless, valid and binding among the parties, for the time-honored rule is that even a verbal contract of sale or real estate produces legal effects between the parties[1].
Can the seller claim that he still owns the property, even after signing the deed of sale and receiving the selling price, because the deed of sale is not notarized?
No. The seller cannot claim later on that he still owns the property, especially if the seller received the selling price in full. Ownership is already transferred to the buyer after the deed of sale is signed, and the selling price is fully paid.
What then is the consequence if the deed of sale is not notarized?
If the deed of sale is not notarized, one of the consequences is that the title cannot be transferred or registered under the name of the buyer.
Article 1358 of the Civil Code requires that the form of a contract transmitting or extinguishing real rights over immovable property should be in a public document. Under the Rules of Court, public documents are documents acknowledged before a notary public, among others.
What can the buyer do to compel the seller to have the document notarized?
The buyer can file a complaint for specific performance against the seller in court.
What else can the buyer do to protect his rights over the property that he purchased involving an un-notarized deed of sale?
The buyer can file an adverse claim before the Registry of Deeds.
If the case for specific performance is pending, the buyer can file a notice of lis pendens also before the registry of deeds.
If you want guidance in your real estate documents, contact Barrister Realty. Our legal and realty experts are here to assist you.
You may contact Barrister Realty at:
(63) 954-997-3832.
[1] IVQ Landholdings, Inc. vs. Reuben Barbosa, G.R. No. 193156, 18 January 2017.