Short answer. Yes. Article 1465 of the Civil Code expressly provides that things subject to a resolutory condition may be the object of a contract of sale. You can sell what you currently own even if that ownership might end when a specified future event occurs.
What the law says
Things subject to a resolutory condition may be the object of the contract of sale.
Civil Code, Article 1465 — Things Under a Resolutory Condition. Read the full provision →
What a resolutory condition is
A resolutory condition is a future and uncertain event that, when it occurs, extinguishes an already-existing right or obligation. For example: you own land because you were given it on condition that you do not remarry — if you remarry, your ownership ends. Or you hold property under an agreement that the previous owner may buy it back within a set period. In both cases, your current ownership is real and valid, but it is subject to being ended by the happening of the condition.
Why the sale is valid despite the condition
Article 1465 removes any doubt: things subject to a resolutory condition may be the object of the contract of sale. Your present ownership, however fragile, is sufficient to support a sale. The buyer acquires the seller's interest as it exists at the time of the sale — including the condition attached to it. This means the buyer knows or should know that the thing may be lost if the condition is fulfilled. The sale itself is not void simply because the seller's right is contingent.
What happens if the condition is later fulfilled
If after the sale the resolutory condition occurs and the seller's original title is extinguished, the buyer's title is generally affected as well — because the buyer took the property with notice that the condition existed. The Civil Code principles on the effects of conditions on obligations govern what happens to the rights of each party in that event. This is a significant risk that a buyer should understand and, ideally, protect against — through warranties, price adjustments, or other mechanisms in the sale agreement.
Disclosure and practical advice
If you are selling property that is subject to a resolutory condition, disclose the condition clearly to the buyer before the sale is completed. Selling without disclosure exposes you to claims of fraud or misrepresentation and may affect the validity of the transaction on grounds beyond Article 1465. If you are buying property and the seller mentions a condition attached to their ownership, have a lawyer review what that condition means for the security of your title and what protections you should negotiate into the contract.
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.
- Heirs of Zoilo Espiritu, et al. vs. Sps. Maximo Landrito etc., et al, G.R. No. 169617, April 4, 2007 — read the decision on LawPhil →