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  • Writer's pictureZiggurat Realestatecorp

Is an oral sale of land really unenforceable?

In the Philippines, the enforceability of an oral sale of land depends on the circumstances. Let’s explore this further:

  • Unenforceability Under the Statute of Frauds:

  • Generally, an oral sale of real property is not considered void, but it is unenforceable under the Statute of Frauds. This means that while the oral agreement itself may not be legally binding, it can still have some legal effects.

  • The Statute of Frauds requires certain contracts, including real estate transactions, to be in writing to be enforceable. However, there are exceptions.

  • Partially or Completely Executed Contracts:

  • If the oral sale has been partially or completely executed, it may still be enforceable. In other words, if the parties have already taken significant steps (such as possession, payment, or other acts) based on the oral agreement, it can be upheld.

  • The Statute of Frauds is not applicable in cases where the verbal sale has been executed, meaning that the parties have fulfilled their obligations under the agreement.

  • Legal Effects Between the Parties:

  • Even without a written contract, an oral sale of real estate can still produce legal effects between the parties.

  • Courts recognize that practical considerations and actions taken by the parties can validate an oral agreement, especially when it has been acted upon.

In summary, while an oral sale of land is generally unenforceable under the Statute of Frauds, its validity depends on the specific circumstances and whether it has been partially or completely executed.

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