G.R. NO. 149756 - MYRNA RAMOS, VS. SUSANA S. SARAO AND JONAS RAMOS.DECISION - Supreme Court E-Library

Ruling

WHEREFORE , the instant appeal is DISMISSED for lack of merit. The decision dated January 19, 1995 of the Regional Trial Court, Branch 145, Makati City is AFFIRMED in toto . [3] The Facts On February 21, 1991, Spouses Jonas Ramos and Myrna Ramos executed a contract over their conjugal house and lot in favor of Susana S. Sarao for and in consideration of P1,310,430. [4] Entitled DEED OF SALE UNDER PACTO DE RETRO, the contract, inter alia , granted the Ramos spouses the option to repurchase the property within six months from February 21, 1991, for P1,310,430 plus an interest of 4.5 percent a month. [5] It was further agreed that should the spouses fail to pay the monthly interest or to exercise the right to repurchase within the stipulated period, the conveyance would be deemed an absolute sale. [6] On July 30, 1991, Myrna Ramos tendered to Sarao the amount of P1,633,034.20 in the form of two managers checks, which the latter refused to accept for being allegedly insufficient. [7] On August 8, 1991, Myrna filed a Complaint for the redemption of the property and moral damages plus attorneys fees. [8] The suit was docketed as Civil Case No. 91-2188 and raffled to Branch 145 of the Regional Trial Court (RTC) of Makati City. On August 13, 1991, she deposited with the RTC two checks that Sarao refused to accept. [9] On December 21, 1991, Sarao filed against the Ramos spouses a Petition for consolidation of ownership in pacto de retro sale docketed as Civil Case No. 91-3434 and raffled to Branch 61 of the RTC of Makati City. [10] Civil Case Nos. 91-2188 and 91-3434 were later consolidated and jointly tried before Branch 145 of the said Makati RTC. [11] The two lower courts narrated the trial in this manner: x x x Myrna [Ramos] testified as follows: On February 21, 1991, she and her husband borrowed from Sarao the amount of P1,234,000.00, payable within six (6) months, with an interest thereon at 4.5% compounded monthly from said date until August 21, 1991, in order for them to pay [the] mortgage on their house. For and in consideration of the said amount, they executed a deed of sale under a [ pacto de retro ] in favor of Sarao over their conjugal house and lot registered under TCT No. 151784 of the Registry of Deeds of Makati (Exhibit A). She further claimed that Sarao will keep the torrens title until the lapse of the 6-month period, in which case she will redeem [the] subject property and the torrens title covering it. When asked why it was the amount of P1,310,430 instead of the aforestated amount which appeared in the deed, she explained that upon signing of the deed in question, the sum of P20,000.00 representing attorneys fees was added, and its total amount was multiplied with 4.5% interest rate, so that they could pay in advance the compounded interest. She also stated that although the market value of the subject property as of February 1991 [was] calculated to [be] more or less P10 million, it was offered [for] only P1,310,430.00 for