Spouses Cecille B. Balasabas & Orielle Balasabas & Spouses William Bolongaita & Ildegardes v. Bolongaita

Summary

This case involved a property dispute where petitioners-spouses sold land to respondent through a 'Deed of Sale with Right of Repurchase' for P5,000.00 with a five-year repurchase period. After petitioners failed to repurchase within the agreed timeframe, respondent claimed absolute ownership while petitioners argued the transaction was an equitable mortgage. The Supreme Court applied Civil Code principles of contract interpretation, finding the contract terms clear and unambiguous. The Court determined that the purchase price was not unusually inadequate and that there was insufficient evidence to support the equitable mortgage claim. Since the respondent had been paying taxes and the petitioners failed to repurchase within the stipulated period, the Court affirmed that respondent acquired absolute title and was entitled to physical possession of the property. The decision reinforced the binding nature of pacto de retro sales when contract terms are clear.