A entered into a contract of sale with pacto de retro over B's house & lot. The house is valued at ₱10M. B failed to exercise the right to repurchase. State the effect of B's failure to exercise the right to repurchase.
A)B can consolidate his ownership to become the owner.
B)B need not consolidate his ownership because by the mere lapse of the period to repurchase, he became the owner.
C)B cannot consolidate his ownership because that would amount to pactum commissorium.
D)B cannot sell the property as he is the owner.

Question

Quizplus · Accepted Answer

In a pacto de retro sale, when the seller (B in this case) fails to exercise the right to repurchase within the agreed period, the buyer (A) automatically becomes the owner of the property without the need for any further action to consolidate ownership. This is because the ownership is conditionally transferred to the buyer at the time of the sale, and becomes absolute upon the failure of the seller to repurchase within the stipulated period.

A Entered into a Contract of Sale with Pacto De