What implied warranties does a seller automatically give the buyer in every sale even without express agreement?

The warranty of title and peaceful possession

Article 1547's first implied warranty is that the seller has a right to sell the thing at the time when the ownership is to pass, and that the buyer shall from that time have and enjoy the legal and peaceful possession of the thing. This is a warranty about the seller's title and about the buyer's ability to hold onto the thing afterward without a better claim from someone else disturbing that possession.

The warranty against hidden defects and undisclosed encumbrances

The second implied warranty is that the thing shall be free from any hidden faults or defects, or any charge or encumbrance not declared or known to the buyer. This covers two different problems: physical defects the buyer could not have discovered on ordinary inspection, and legal burdens on the thing — like a lien or mortgage — that were not disclosed to or already known by the buyer at the time of sale.

Both warranties apply automatically, but can be waived

Article 1547 opens with unless a contrary intention appears, meaning both warranties attach to a sale by default without the parties needing to write them into the contract. But that same phrase means the parties can exclude or modify them if they clearly intend to — a seller and buyer who expressly agree the sale is as-is, or otherwise limit these warranties, are not stuck with the default rule.

Who this article does not make liable

Article 1547 carves out a specific group of sellers: it shall not be held to render liable a sheriff, auctioneer, mortgagee, pledgee, or other person professing to sell by virtue of authority in fact or law, for the sale of a thing in which a third person has a legal or equitable interest. These sellers act under legal authority to sell someone else's property, often precisely because a third party has a competing interest in it, so the ordinary implied warranties this article creates do not extend to them in that capacity.

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.

• Eduardo Atienza vs. Golden Ram Engineering Supplies & Equipment Corporation and Bartolome Torres, G.R. No. 205405, June 28, 2021 — read the decision on LawPhil →
• In the Matter of Urgent Petition for the Release of Prisoners on Humanitarian Grounds, G.R. No. 252117, July 28, 2020 — read the decision on LawPhil →
• RCBC Savings Bank vs. Noel M. Odrada, G.R. No. 219037, October 19, 2016 — read the decision on LawPhil →
• Estelita Villamar vs. Balbino Mangaoil, G.R. No. 188661, April 11, 2012 — read the decision on LawPhil →

Related provisions

• Civil Code, Article 1547 — Implied Warranties (Title and Against Hidden Defects)