Short answer. Yes, if the threat is a real legal claim — not just harassment. The law allows a buyer to suspend payment of the price when there is a vindicatory action or mortgage foreclosure that disturbs or threatens possession, until the seller causes the disturbance to stop or provides adequate security.
What the law says
Should the vendee be disturbed in the possession or ownership of the thing acquired, or should he have reasonable grounds to fear such disturbance, by a vindicatory action or a foreclosure of mortgage, he may suspend the payment of the price until the vendor has caused the disturbance or danger to cease, unless the latter gives security for the return of the price in a proper case, or it has been stipulated that, notwithstanding any such contingency, the vendee shall be bound to make the payment. A mere act of trespass shall not authorize the suspension of the payment of the price.
Civil Code, Article 1590 — Buyer's Right to Suspend Payment. Read the full provision →
What kind of threat qualifies
Not every complaint or threat allows suspension. The statute specifies two qualifying threats: a vindicatory action — a formal legal claim by someone asserting ownership of the property you purchased — and a foreclosure of mortgage that was placed on the property before you bought it and which could extinguish your ownership. Actual filing of a case is not strictly required; having reasonable grounds to fear such a disturbance is enough. But the fear must be grounded in a real legal threat, not just a neighbor's bluster or a rival claiming the property without any legal basis to do so.
What a mere trespass does not do
The statute specifically carves out mere trespass: someone physically entering or occupying a portion of the property without any legal claim to ownership does not entitle you to suspend payment. If someone is squatting on the land or blocking a fence, that is a problem — but it does not trigger Article 1590. The right to suspend is reserved for situations where your legal title itself is under attack, not just your physical possession.
How the seller can lift the suspension
Two things end the buyer's right to withhold payment. First, if the seller causes the disturbance or legal threat to cease — for example, by settling the third-party claim or obtaining a court ruling that extinguishes the adverse claim — the reason for suspension disappears and payment becomes due again. Second, if the seller provides adequate security for the return of the price in the event the buyer is eventually evicted, the seller can require the buyer to resume paying in the meantime. The security must be appropriate to the risk; a bare promise will not do.
What if the contract says you must pay regardless
Article 1590 allows the parties to contract out of the suspension right. If your deed of sale or contract to sell contains a clause expressly stating that the buyer shall remain bound to pay notwithstanding any claim or disturbance by a third party, that stipulation controls. Review your contract carefully for such a waiver. If you signed one without fully understanding it, you may still have remedies — but the automatic right to suspend payment may have been contractually surrendered.
Cases citing this provision
These Supreme Court decisions cite the provision above. We list them so you can read them yourself; the summaries of what each decided are not ours to give.
- Central Bank of the Philippines vs. Spouses Alfonso and Anacleta Bichara, G.R. No. 131074, March 27, 2000 — read the decision on LawPhil →
- Arra Realty Corp., et al. vs. Guarantee Development Corp. and Insurance Agency, et al, G.R. No. 142310, September 20, 2004 — read the decision on LawPhil →
- Corinthian Realty, Inc. vs. Hon. Court of Appeals and Emilio Martin (now deceased), Matilde Martin, Teofilo Guinto (now deceased), Delfin Guinto, Prudencio Guinto and Margarita Guinto, G.R. No. 150240, December 26, 2002 — read the decision on LawPhil →