What is conventional redemption?
There is conventional redemption when the seller reserved the right to repurchase the thing sold coupled with an obligation to return the price of the sale, expenses of contract & other legitimate payments and the necessary & useful expenses made on the thing sold.
What are the conditions before the seller may avail of conventional redemption?
The seller must return to the vendee the following:
- the price of the sale,
- expenses of the contract,
- necessary and useful expenses made on the thing sold, and
- any other legitimate payments made by reason of the sale.
Legal Basis: Articles 1601 and 1616 of the New Civil Code.
When can the seller exercise his right to redeem?
- In the absence of an agreement – the seller shall avail of the right to redeem within 4 years from date of contract
- When there is an agreed period, the same should not exceed 10 years; but if it exceeded, valid only for the first 10 years.
Legal Basis: Article 1606 of the New Civil Code