Realty By JM

Salt and Light of Philippine Realty

Lease in General (part 2)

“A contract of lease is a personal right which does not bind anybody but the parties thereto (Plan v. Court of Appeals, G.R. No. L-49281, April 15, 1988).” (p. 373 Real Property: Ownership, Registration, Development, Contracts, and Taxation by Atty. Victorino C. Mamalateo & Atty. Mary Joy B. Mamalateo-Jusay)

If you’re a Real Estate Agent or Broker may I suggest you read and understand the case above?  It will help you in your practice sooner or later. 

I once had lessee who subleased a parking slot without informing their lessor.  It was a breach of contract!  For, in the lease agreement, it clearly stated that the lessor shall not sublet the property.  And of course, this includes the condominium’s parking slot. 

So, now there’s a third party involved.  Is the lessor or property owner bound to the third party?  The case presented above says no.  But, can the lessor terminate the contract between the lessee and the third party?  The lessor, I believe can terminate the agreement between him and his lessee only.  Which will incidentally terminate the agreement between the lessee and the third party. 

Though the lessor has every right to terminate the agreement between him and the lessee, he did not do it because he wanted to preserve the relationship.  Please keep in mind that this doesn’t happen all the time. 

On the next post, we will try to discuss the possibility of binding third persons in a contract of lease.

But, before that, some disclaimer.  These are just my thoughts and opinions about the subject at hand.  I am no law expert.  Well, I’m try to learn the law though.  So, these are not facts.  You should always seek the advice of a lawyer is matters pertaining to law.

And, I would like to thank the authors of the book “Real Property: Ownership, Registration, Development, Contracts, and Taxation”, Atty. Victorino and Mary Joy.  Am learning a lot.  Thank you very much.

Of course, I encourage my readers (if there are any), to get a copy of the book.

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