Quick answer

In every sale, unless otherwise stipulated, the law implies a warranty against eviction, by which the seller guarantees that the buyer shall have and enjoy the legal and peaceful possession of the thing sold, and that the seller has the right to sell it. Eviction takes place when, by a final judgment based on a right prior to the sale or an act imputable to the seller, the buyer is deprived of the whole or of a part of the thing purchased. In other words, if a third person, by virtue of a right existing before the sale, successfully claims the property and the buyer loses it (or part of it) through a court judgment, the buyer has been evicted, and the seller is answerable under the warranty. The requisites for the warranty against eviction to be enforced generally are: the buyer is deprived of the whole or part of the thing sold; by a final judgment; based on a right prior to the sale or an act imputable to the seller; the seller was summoned in the suit for eviction at the buyer's instance (the buyer must notify and implead the seller so the seller can defend the title); and there is no waiver on the part of the buyer (a waiver of the warranty, if made in good faith and knowingly, may bar recovery, but a stipulation exempting the seller from the warranty is void if the seller acted in bad faith). When eviction occurs and the requisites are met, the buyer may demand from the seller: the return of the value of the thing at the time of eviction (whether greater or less than the price); the income or fruits if ordered to deliver them to the party who won the suit; the costs of the suit; the expenses of the contract; and, if the seller acted in bad faith, damages and interest. So the warranty against eviction means the seller guarantees the buyer's ownership and peaceful possession, and if the buyer is evicted by a superior prior right, the seller must answer for the value and related losses, provided the seller was properly summoned in the eviction suit.

What the Seller Guarantees

Every sale implies a warranty against eviction: the seller guarantees the buyer's legal and peaceful possession and that the seller has the right to sell. Eviction = the buyer is deprived of the thing by a final judgment based on a right prior to the sale.

The Requisites

The Buyer's Remedies

On eviction, the buyer may recover the value of the thing at the time of eviction, the fruits (if made to deliver them), the costs of suit and expenses of the contract, and, if the seller was in bad faith, damages and interest.

Practical Takeaways

Frequently Asked Questions

What is the warranty against eviction? An implied warranty in every sale by which the seller guarantees that the buyer shall have the legal and peaceful possession of the thing sold and that the seller has the right to sell it.

When does eviction occur? When, by a final judgment based on a right prior to the sale or an act imputable to the seller, the buyer is deprived of the whole or a part of the thing purchased.

What must the buyer do to enforce the warranty? Among the requisites, the buyer must summon the seller in the suit for eviction, that is, notify and implead the seller so the seller can defend the title. There must also be no valid waiver by the buyer.

What can the buyer recover if evicted? The value of the thing at the time of eviction, the fruits if ordered to deliver them, the costs of the suit, the expenses of the contract, and, if the seller acted in bad faith, damages and interest.

This commentary is for general informational purposes only and does not constitute legal advice. For guidance specific to your situation, please consult a licensed attorney.

If you have questions about your rights or options under Philippine law, our firm is available to assist. You may reach us via Viber or WhatsApp, call us at 0995 433 5550, or send an email to vivasnobles@gmail.com. We look forward to hearing from you.