Short answer. Yes. Article 1551 of the Civil Code provides that if property is sold for nonpayment of taxes that were not disclosed to the buyer before the sale, the seller is liable for eviction. The concealment of the tax liability triggers the seller's warranty obligation.
What the law says
If the property is sold for nonpayment of taxes due and not made known to the vendee before the sale, the vendor is liable for eviction.
Civil Code, Article 1551 — Eviction for Unpaid Taxes. Read the full provision →
What eviction means in a sale context
In Philippine property law, "eviction" in this context does not just mean being physically removed. It refers to the legal loss of possession or ownership through the enforcement of a right that a third party — here, the government — had over the property before or at the time of the sale. When a property is seized and sold to recover unpaid real property taxes, the buyer who thought they owned the property discovers they hold nothing because the government's lien took priority. The Civil Code treats this as an eviction for which the seller answers.
The two conditions that trigger seller liability
Article 1551 is precise: liability arises when two things are true at the same time. First, the property was actually sold — meaning the seizure happened — for nonpayment of taxes that were due. Second, those taxes were not made known to the buyer before the sale. The second element is the critical one. If the seller disclosed the unpaid taxes before the deal closed and the buyer purchased anyway, the liability calculus changes. The article protects the buyer who was kept in the dark, not one who knowingly accepted a tax-encumbered property.
What a buyer in this situation can do
A buyer who suffers eviction through a tax seizure that was concealed may seek remedies against the seller. The warranty against eviction entitles the buyer to recover the price paid, along with other items the Civil Code's warranty provisions specify for eviction — costs of the suit and other losses flowing from the eviction. The buyer has a personal claim against the seller based on the failure to disclose, and the strength of that claim depends largely on establishing that the seller knew of the tax liability and said nothing before the contract was signed.
Practical steps before buying property
The lesson Article 1551 encodes is also a pre-purchase checklist item. Before closing a sale, a buyer should obtain a tax clearance or verify the status of real property tax payments with the local government unit. A clearance showing taxes are current protects the buyer; discovering arrears puts the buyer in a position to demand payment or renegotiate the price before committing. Relying solely on the seller's assurances, without independent verification, leaves a buyer exposed to precisely the situation this article addresses.