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THIRD DIVISION
[ G.R. No. 225449, February 26, 2020 ]
SPOUSES RENE LUIS GODINEZ AND SHEMAYNE GODINEZ,
PETITIONERS, VS. SPOUSES ANDREW T. NORMAN AND JANET A.
NORMAN, RESPONDENTS.
DECISION
LEONEN, J.:
Generally, partial payments of the purchase price on a contract to sell should be
returned to the buyer if the sale does not push through, unless forfeiture of such partial
payments was stipulated. However, these partial payments may be retained and
considered as rentals by the seller if the buyer was given possession or was able to use
the property prior to transfer of title.[1]
This is a Petition for Certiorari[2] under Rule 65 filed by spouses Rene Luis Godinez and
Shemayne Godinez (the Godinez Spouses) alleging that the Court of Appeals
committed grave abuse of discretion amounting to lack or excess of jurisdiction when it
ordered them to reimburse the amounts paid by spouses Andrew and Janet Norman
(the Norman Spouses) under a contract to sell.
In a Resolution dated August 22, 2016,[3] this Court dismissed the Petition for
Certiorari for being the improper remedy, and for failure to sufficiently show grave
abuse of discretion on the part of the Court of Appeals.
The Godinez Spouses filed a Motion for Reconsideration,[4] which was granted by this
Court in its January 25, 2017 Resolution.[5] The Petition for Certiorari was, therefore,
reinstated, and the Norman Spouses were required to file their Comment thereto. The
Norman Spouses commented on the motion on April 3, 2017,[6] and the Godinez
Spouses replied to the comment on May 3, 2017.[7]
The facts derived from the proceedings a quo reveal that sometime in August 2006, the
Godinez Spouses agreed to sell the leasehold rights over a housing unit at 8-A and 8-B
Grouper Street, East Kalayaan, Subic Bay Freeport Zone, to the Norman Spouses for
US$175,000.00.[8]
On August 23, 2006, the Norman Spouses paid US$10,000.00 to the Godinez Spouses
as partial payment. The parties agreed that the remaining balance would be paid within
30 working days from the payment of the US$10,000.00. After payment of this initial
installment, the Norman Spouses moved their furniture and appliances into the houses,
and assigned a house helper to act as their caretaker. However, the Norman Spouses
eventually asked the Godinez Spouses for an extension of time to pay the remaining
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