Spec Pro Class 2020

SECTION 1. Petition of guardian for leave to sell or encumber estate.

 

   When the income of the estate under guardianship is insufficient to maintain the ward and his family, or to maintain and educate the ward when a minor, or when it appears that it is for the benefit of the ward that his real estate or some part thereof be sold, or mortgaged or otherwise encumbered, and the proceeds thereof put out at interest, or invested in some productive security, or in the improvement or security or other real estate of the ward, the guardian may present a verified petition to the court by which he was appointed setting forth such facts, and praying that an order issue authorizing the sale or encumbrance.

 

SECTION 2. Order to show cause thereupon.

 

     If it seems probable that such sale or encumbrance is necessary, or would be beneficial to the ward, the court shall make an order directing the next of kin of the ward, and all persons interested in the estate, to appear at a reasonable time and place therein specified to show cause why the prayer of the petition should not be granted.

 

SECTION 3. Hearing on return of order. Costs.

​

    At the time and place designated in the order to show cause, the court shall hear the proofs and allegations of the petitioner and next of kin, and other persons interested, together with their witnesses, and grant and refuse the prayer of the petition as the best interest of the ward require. The court shall make such order as to cost of the hearing as may be just.

​

​

SECTION 4. Contents of Order for sale or encumbrance, and how long effective

​

General Rule:

    Sale must first be confirmed by the court, and that until such confirmation, not even equitable title passes.
 

Exception: 

    The court’s order expressly authorized the guardian to execute and deliver to the purchaser definitely named, a deed of conveyance to a parcel of land
specifically described at a price already fixed and it was intended to be the approval itself of the sale that was already perfected or agreed upon by the seller and the buyers, needing only a judicial go-ahead signal to reduce
the agreement to the statutory form and it had been made without departure from the terms of the order (Soriano, et. al. v. Latono, G.R. No. L-3408, December 23, 1950).
 

Duration of the order of sale and encumbrance of property:
     Within 1 year from the granting of the order. It is presumed that if the property was not sold within 1 year, the ward has sufficient income.
 

• The guardian, among others, cannot acquire by purchase even at a public or judicial auction, either in person or through the mediation of another, the property of the person or persons who may be under his guardianship

​

• 1 year unless renewed by the court.The authority to sell or encumber shall not extend beyond

 

• Appeal is the proper remedy against an order of the court authorizing the sale of the ward’s property (Lopez v.Teodoro, G.R. No. L- 3071, May 29, 1950)

​​

Note:

There being a presumption that the sale of the ward’s estate is valid, it cannot be attacked collaterally in the registration proceedings. A separate action to avoid or rescind the sale on the grounds specified by law should
be filed (Margate v. Rabacal, G.R. No. L-14302, April 30, 1963).

​

​

SECTION 5. Court may order investment of proceeds and direct management of estate

​

      The court may authorize and require the guardian to invest the proceeds of sale and encumbrances, and any other of his ward's money in his hands, in real estate or otherwise, as shall be for the best interest of all concerned, and may make such other orders for the management, investment and disposition of the estate and effects, as circumstances may require

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​