Ronaldo P. Abilla v. Carlos Ang Gobonseng, Jr.

Summary

This case involves a property dispute where respondent borrowed P550,000 from petitioner secured by real estate mortgage. After default and failed promises to pay from a new loan, respondent executed a deed of sale over seventeen lots with option to repurchase within six months. When respondent failed to exercise the option, courts ultimately declared the transaction a pacto de retro sale. The Supreme Court initially denied respondent's right to repurchase but upon reconsideration, applied Article 1606's third paragraph allowing repurchase within thirty days from final judgment. The Court found respondent had bona fide belief the transaction was an equitable mortgage given the circumstances involving the original secured loan becoming unsecured and the deed serving as security. The Court ordered petitioners to accept respondent's timely tendered payment filed within the thirty-day period and execute the necessary conveyance deed.