Civil Law, 2013 Bar — Question VIII

ESSAY

Ciriaco Realty Corporation (CRC) sold to the spouses Dela Cruz a 500-square meter land (Lot A) in Parañaque. The land now has a fair market value of P1,200,000. CRC likewise sold to the spouses Rodriguez, a 700-square meter land (Lot B) which is adjacent to Lot A. Lot B has a present fair market value of P1,500,000. The spouses Dela Cruz constructed a house on Lot B, relying on the representation of the CRC sales agent that it is the property they purchased. Only upon the completion of their house did the spouses Dela Cruz discover that they had built on Lot B owned by the spouses Rodriguez, not on Lot A that they purchased. They spent P1,000,000 for the house. As their lawyer, advise the spouses Dela Cruz on their rights and obligations under the given circumstances, and the recourses and options open to them to protect their interests.

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