Q. Dear Atty. Rogie Wong, please give me an advice on how to proceed with our claim. Our mother owns a house and lot in the Philippines. Hereunder is the background of our concerns.
Before our Mom died about eight years ago, she tried to sell the property with the purpose of dividing it in four equal shares to the four siblings. However because the selling price was too low during that time she decided to wait for a while hoping that the market will improve.
As her health worsens she decided to transfer the Land title to our older brother’s name temporarily with the permission from all of us –siblings. For this purpose we executed a Special Power of Attorney, in favour of our older brother.
However, unexpectedly when the title was already transferred in the name of our older brother, he died of heart attack. As to today, the property still not sold and still under our brother’s name.
Now his wife is claiming that she is the only owner of the property, in spite of our explanation and persistent appeal to the effect that the property was transferred to her husband’s name due to our mother’s illness and for the convenience for us brother and sister.
We’re tied up in North America and don’t have the luxury of travel to the Philippines and only for the purpose of selling the property to be divided into four shares after the sale.
I would like to add that I have dual citizenship and she is Canadian. The other brother and sister are American Citizens.
Questions:
1) How can we negotiate with our sister in law to clarify that the transfer is only to liquidate the property and divided in four shares?
2) How can we proceed to our legal claim without ending up in court do we need a Lawyer, financially we are low of funds (Retired).
3) Every time I tried explaining to her, about the property, she thinks that I am brain washing her.( She has very limited studies )
Looking forward to hearing from you. Thank you. John Cruz.
ANS: HAPPY NEW YEAR TOO! Obviously you don’t want this adverse situation to further escalate into litigation. If this is your primary objective, you really have to reach out with your sister-in-law to let go of the subject property which is held only in trust in the name of her deceased husband which is your brother.
For the above-purpose, and in response to your question no. 1, you could solicit the mediation of your relatives or friends to convince you’re your sister-in-law. Your sister-in-law’s obstinate position could be due to her ignorance on the matter. If you could find someone that she trust and is comfortable with in dealing with the situation, perhaps this could assuage her and come to terms with your position.
If this mediation effort fails and all avenues to reach out is in vain, then your only option to bring the matter to the court of law.
Legally, based on the facts you have mentioned, there is no doubt that the subject property was only a mere and simple trust. Your deceased brother being a trustee for and on behalf of his siblings.
Thus, the deed of sale that was executed in favour of your deceased brother is referred to in law, as “Simulated Contract”. This means that the parties to the contract do not have any intention to be bound by it. This simulated contract is made more evident when there is no money as payment or consideration in the purported sale of the property.
That being the case, the Deed of Sale conveying the subject property to your deceased brother is NULL and VOID under the law, pursuant to the Civil Code hereunder:
“Art. 1345. Simulation of a contract may be absolute or relative. The former takes place when the parties do not intend to be bound at all; the latter, when the parties conceal their true agreement.”
Our latest jurisprudence on the matter has been consistent. In the recent similar case of the, Heirs of Policarpio M. Ureta, Sr.,et al. v. Heirs of Liberato Ureta, et al, which was promulgated on September 14, 2011, G.R. 165748 ; GR. No.165930, the Supreme Court held :
“In absolute simulation, there is a colorable contract but it has no substance as the parties have no intention to be bound by it. The main characteristic of an absolute simulation is that the apparent contract is not really desired or intended to produce legal effect or in any way alter the juridical situation of the parties. As a result, an absolutely simulated or fictitious contract is void, and the parties may recover from each other what they may have given under the contract. “
As to the answer to your questions no. 2 and 3, and more particularly where mediation fails or all avenues of amicable settlement is futile, then your only option to initiate legal proceedings against your sister-in-law, based on the above-mentioned cause of action.
As a first step, your lawyer shall send a DEMAND LETTER to your sister-in-law formally demanding the return of the entrusted property within certain period. If despite of the written demand, your sister-n-law would still refuse to reconvey the subject property, then the next step to file the corresponding case in the court of law and for the payment damages and attorney’s fees.
If at all, your sister-in-law and her children (your nephew/nieces) as your co-heirs and in representation of your deceased brother (trustee) is/are entitled only to receive corresponding share from the estate or inheritance which is equivalent to the same share for each of the sibling.
Thus, for example you there are four siblings, and the estate or property are worth $100.00, each one of the siblings gets $25.00 each. In turn the heirs of your deceased brother (surviving spouse and their children) will share per stirpes, the $25.00 amongst themselves by right of representation or in representation of your deceased sibling, no more any less. Looking forward you’ll find the above in order.