Text of the provision
Art. 1450. If the price of a sale of property is loaned or paid by one person for the benefit of another and the conveyance is made to the lender or payor to secure the payment of the debt, a trust arises by operation of law in favor of the person to whom the money is loaned or for whom its is paid. The latter may redeem the property and compel a conveyance thereof to him.
Civil Code of the Philippines, Republic Act No. 386, approved June 18, 1949, effective August 30, 1950. Reproduced in full; verified verbatim against the LawPhil and ChanRobles official-text renderings.
What this article means
When one person pays/loans the purchase price for another and title is put in the lender/payor to secure the debt, a trust arises; the borrower may redeem and compel conveyance — an equitable mortgage in trust form.
Related provisions
- Article 1449 — Trust From a Donation.
- Article 1451 — Trust From Succession.
Cases citing this article
- Maria B. Ching vs. Joseph C. Goyanko, Jr., et al, G.R. No. 165879, November 10, 2006 — read the decision on LawPhil →
- Sps. Felipe and Josefa Paringit vs. Marciana Paringit Bajit, et al, G.R. No. 181844, September 29, 2010 — read the decision on LawPhil →
- Marcelito D. Quevada vs. Court of Appeals, et al, G.R. No. 140798, September 19, 2006 — read the decision on LawPhil →
Compiled automatically from Supreme Court decisions published on LawPhil that expressly cite this article, most frequently cited first. A listing means the decision cites the provision — it is not a statement that the case is the leading authority, and it does not show whether a ruling has since been modified or abandoned. Always read the decision itself.