Redemption Rights: Can You Redeem Property Without Being the Registered Owner?

The Supreme Court recently settled a question that often confuses property buyers: can a person who bought real property but has not yet transferred the title in their name redeem that property from a tax delinquency sale? In Davidson Go v. Spouses Henry and Janet Ko (G.R. No. 253355, November 8, 2023), the Court answered yes—provided the buyer can show ownership or legal interest, and the redemption price is paid within the one-year period.

The ruling is a practical guide for buyers who rely on deeds of sale that are undated or unnotarized, and for anyone navigating the redemption rules under the Local Government Code.

The Facts of the Case

Davidson Go purchased a lot in Quezon City at a tax delinquency auction conducted by the City Government on April 7, 2011. The Certificate of Sale was annotated on the title. When the registered owner—Lexus Development, Inc.—failed to redeem the property within one year, the City Treasurer's Office issued a Final Bill of Sale in Go's favor.

Spouses Henry and Janet Ko opposed. They claimed they had bought the same lot from Lexus through an undated, unnotarized Deed of Absolute Sale and had lived there since 1996. They learned of the auction only in March 2012. On March 29, 2012—still within the one-year redemption period—they paid the full redemption price of P348,355.92 through a representative. The City Treasurer's Office issued an official receipt in the name of Lexus.

The trial court ruled for Go, saying the spouses failed to prove they were authorized to redeem. The Court of Appeals reversed, and the Supreme Court affirmed the appellate ruling.

The Issue

The central question was whether the spouses validly redeemed the property even though they were not the registered owners and did not present proof of ownership or legal interest when they paid the redemption price.

The Court's Ruling

The Court denied Go's petition and upheld the validity of the redemption.

Who may redeem. Section 261 of Republic Act No. 7160, the Local Government Code of 1991, grants the right to redeem to "the owner of the delinquent real property or person having legal interest therein, or his representative." The Court held that the spouses qualified as owners, even if the title had not yet been transferred to their names.

An unnotarized deed is still valid. The Court clarified that while Article 1358 of the Civil Code requires sales of real property to be in a public document, this requirement is not essential for validity between the parties. An undated, unnotarized deed still transfers real rights from seller to buyer. The spouses' open, continuous, and exclusive possession since 1996 further supported their claim.

No need to show authority at payment. The Court rejected Go's argument that the spouses should have presented proof of ownership or authority to the City Treasurer's Office. The law does not require this. What matters is that the payment was made within the one-year period and was credited to the delinquent owner, Lexus—as shown by the official receipt.

Redemption is favored. The Court reiterated the policy that redemption laws should be liberally construed in favor of the redemptioner. Where no injury follows, courts will aid rather than defeat the right to redeem.

Practical Takeaways

• Buyers with unregistered deeds can redeem. A purchaser who has not yet transferred the title may still redeem a tax-delinquent property, as long as ownership or legal interest is shown.
• Notarization is not a magic requirement. An undated or unnotarized deed of sale remains binding between the parties, though it may not bind third persons until notarized and registered.
• Pay within one year. The redemption period under Section 261 of RA 7160 is strictly one year from the date of the auction sale. Timely payment is the key.
• Keep the official receipt. The receipt showing payment credited to the delinquent owner is strong evidence of a valid redemption.
• When in doubt, redeem early. If there is any question about ownership or authority, it is safer to pay within the period and document the payment clearly.

This article is general information and not legal advice. For your specific situation, consult a lawyer or ask ASG Legal AI.