X and Y sold a house and lot to their son valued at ₱10M for only ₱3M with the condition that it will be delivered after their death. After their death, should the property be brought to collation?
A)Yes, because the contract was not a sale but a donation inter vivos.
B)Yes, because it was a donation mortis causa.
C)No, because it was not acquired by gratuitous title but by onerous title. (Reyes v. CA)
D)Yes, because it was a simulated sale as the price is unusually inadequate.

Question

Quizplus · Accepted Answer

DC) The property should not be brought to collation because the transaction was made through an onerous title, meaning there was a valuable consideration involved in the transfer, even if the price was significantly lower than the market value. This is supported by the case Reyes v. CA, which distinguishes between gratuitous and onerous transfers.D) However, the sale could also be considered a simulated sale due to the unusually inadequate price, which essentially masks a donation. In such cases, the law may treat the transaction as a donation, requiring collation to ensure equitable distribution among heirs. This is because the transaction, while nominally a sale, does not reflect the true intent of the parties and the economic reality of the transaction.

X and Y Sold a House and Lot to Their