Article 1676
ELI5— what this means for you
If you buy land that has an unregistered lease on it, you can generally cancel that lease — unless your contract says otherwise or you knew about the lease — though the tenant can still demand to harvest the current season's crop and be compensated for losses; this right doesn't apply if the sale was a sham meant only to cancel the lease.
Official text — RA 386
The purchaser of a piece of land which is under a lease that is not recorded in the Registry of Property may terminate the lease, save when there is a stipulation to the contrary in the contract of sale, or when the purchaser knows of the existence of the lease.
If the buyer makes use of this right, the lessee may demand that he be allowed to gather the fruits of the harvest which corresponds to the current agricultural year and that the vendor indemnify him for damages suffered.
If the sale is fictitious, for the purpose of extinguishing the lease, the supposed vendee cannot make use of the right granted in the first paragraph of this article. The sale is presumed to be fictitious if at the time the supposed vendee demands the termination of the lease, the sale is not recorded in the Registry of Property. (1571a)
Source: lawphil.net (RA 386 as amended)
Related
RELATED RIGHTS
Legal disclaimer: BatasKo provides general legal information, not legal advice. For advice on contracts, property rights, obligations, or civil damages, consult a licensed Filipino lawyer or the Public Attorney's Office (PAO) at pao.gov.ph.