> When the arrangement is covered

merely by verbal agreement the trust

relationship constituted over immovables
would then be characterized as being
resulting trust.
> RESULTING TRUST- is presumed always
to have been contemplated by the
parties, the intention as to which can be
found in the nature of their transaction
although not expressed in a deed or
instrument of conveyance.
> It is necessary that naked title is
formally registered in the name of the
trustee who expressly assumes fiduciary
obligations to an identified beneficiary.
The implication is that written
undertaking by the title holder of a
property, especially registered land,
holding the property for the benefit of
another only creates a resulting trust and
not an express trust.
> Acquisitive prescription to bar an
action of the beneficiary against the
trustee IN EXPRESSS TRUST
The same rule may be applied to
resulting trust as long as the trustee has
not repudiated the trust.
CONSTRUCTIVE TRUST
> One which is imposed by law there is
neither a promise nor fiduciary relations:
the so called trustee does not recognize
any trust and has no intent to hold the
property for the beneficiary.

title remains with, or has been conveyed

to, another person .
> WHILE IN EXPRESS TRUST the trustee
has active duties of management while
in Constructive, the duty is merely to
surrender the property.
> In order to satisfy the demands of
justice and to prevent unjust enrichment.
SOLUTIO INDEBITI AND
CONSTRUCTIVE TRUST
> Quasi contractual obligation give rise
to a personal liability ordinarily
enforceable by an action at law, while
constructive trusts are enforceable by a
proceeding in equity to compel the
defendant to surrender specific property.
Distinction is more procedural than
substantive.
ART. 1447 IMPLIED TRUST
PARTICULARLY CONSTITUTED BY
LAW
> Resulting trust Art. 1448-1455
> Constructive Art. 1456
Art. 1448
> The person in whose name the
property is registered is the trustee while
the person who paid for the price shall be
the beneficiary.

> No act of repudiation need to be made

byt he trustee for prescription to run.

> RESULTING TRUST from the implied

intentions of the trustor-beneficiary and
the acceptance of the obligation by the
trustee who is fully aware that property
is registered in his name for which he
never paid the price.

Vs. Resulting trust

> Resulting trust draw their essence
from the perceived intention of the
parties as taken from the structure of
transactions covered WHEREAS
Constructive trust draws their essence
from the need to impose an obligation on
a person who takes title to a property to
achieve justice or equity on behalf of
another person who would otherwise be
adversely affected by the fact that such

> DIFFERENT FROM EXPRESS TRUST

BECAUSE- The person who takes the title
to the purchased property does not
expressly bound himself to hold or
administer the same for the benefit of
any person. The presumption of a
resulting truth arises from the fact of a
sale transaction where the evidence
shows that title placed in the name of
one person while the purchase price was
paid by the other.

> Full title is placed in the name of the

person who is not referred to formally as
the trustee.
e.g. The mortgagors -spouses had
effected the sale thereof to the
purported trustee with the undertaking
that the latter would use funds supplied
by the spouse to buy back the property
on behalf of the spouses.
Where the club share was bought by the
company Sime Darby and placed in the
name of an officer Mendoza
WHEN TITLE IS PLACED IN THE NAME
OF A CHILD
> No presumption
> Presumed that there is a gift in favor of
the child.
EXCEMPTION
> disputable presumption hence it can
still be shown that indeed the parents
had placed property bought by them in
the name of their child to impose an
obligation on the part of the child to
administer the same for the benefit of
the parents, especially when the child
reaches the age of majority.
When it is the child who supplied
the purchase price
> Where the father had repurchased the
property he sold to a third party using
the money of his son; Yet the implied
trust arrangement imbued by the trial
court to justify the taking over the title
by the son after the death of the
father.OVERTURNED BY SC
---Notwithstanding the death of the
father he was still the owner of the
repurchase property.
Art 1448 Cannot apply where property is
bought by the father in his own name
using the money of the child.
When contrary intention is proved

> The burden of proving the existence of

a trust is on the party asserting its
existence, and such proof must be clear
and satisfactorily show the existence of
trust and its element.
When purchased price extended as
loan
> No implied trust should also result
because of the lack of intention on the
part of the person supplying the money
to have beneficial interest in the property
bought.
When the purchase is made in
violation of an existing statute
> No trust can result in favor of the party
who is guilty of fraud.
Art. 1450 Purchase of property
where title is placed in the name of
person who loaned the purchase
price
> The buyer took title to the property as
security for the loan or advance given to
the cestui que trust and such trustee
therefore holds title subject to the
intention of the cestui que trust to pay
for the principal as a means to secure
title to the property that was bought in
his behalf in the first placed.
Akin to Equitable mortgage
> Since title to the property intended for
the borrower is placed in the name of the
lender to secure payment of the debt
Mortgage of sale vs. 1450
The equitable mortgage is constituted
between the purported seller
(BORROWER MORTGAGOR) and buyer
(LENDER MORTGAGEE) in the contract of
sale with a right of repurchase, where
the purpose of the sale is really to secure
a principal obligation.
WHEN BORROWER FAILS it would be
anomalous for the lender-buyer to bring
collection case.
But if the lender does nothing because
he is deemed fully paid with the property
already secured ion his name that would

constitute pactum comissorium and the

title of the lender would be void.

of the members of the association and

subject to their will.

> In 1450 Borrower has the ability to

redeem the property by paying the loan
to or advances from the lender-truste.

> Not an express trust because- Full title

is placed in the name of the trustee. He
appears to be the full owner not a
trustee.

> In equitable mortgage, even when the

title is registered in teh name of the
lender, it is considered void for being in
violation of the public policy against
pactum commissorium. In a situation
where the borrower has defaulted his
loan the remedy of the lender is not to
appropriate the title to the property but
rather bring an action for foreclosure of
to bring simple collection suit.
Art. 1454 When absolute
conveyance of property effected as
a means to secure performance of
obligation
Constructive trust
> The law on sales expressly allows the
purported seller to ask for the
reformation of the deed of absolute sale
to reflect its true nature as a mortgage
contract, but nowhere expressly grants
the right to the seller to redeem the
property sold. Hence Art. 1454 expressly
provides for it.
> The borrower to redeem the property
sold is imprescriptible.
Art. 1452 Two or more persons
purchase property jointly, but place
title on one of them
> Allows co owner of a parcel of land to
register his proportionate share in the
name of his co owner in whose name the
entire land is registered- the registered
co owners serves as a legal trustee of
the first co owner insofar as the
proportionate share of the first co owner
is concerned.
>There wan an implied trust constituted
and the registered owner held it under
an obligation, both express and implied
to deal with it exclusively for the benefit

Art. 1453 Property conveyed to a

person merely as holder thereof
Resulting trust
> covers an express trust because title
to property is taken by trustee under a
clear agreement to hold it for another
person. The only difference is that there
may be a situation where the person
sought to be benefited by the grantor
has not yet given formal acceptance of
the benefit.
> Would APPLY IF the person conveying
the property expressly state that he was
establishing the trust.
> Where a property id taken by a person
under an agreement to hold it for or
convey it to another or the grantor a
resulting or implied trust arises in favor
of the person for whose benefit the
property was intended.
Art. 1449 Donation of property to a
donee who shall have no beneficial
title
> The donor is deemed to have become
the beneficiary under an implied trust.
> Where the father donated a piece of
land in the name of the daughter but
with verbal notice that the other half
would be held by her for the benefit of a
younger brother, coupled with a deed of
waiver later executed by the daughter
that she held the land for the common
benefit of her brother.
Art. 1451 Land passes by succession
but heir places title into a trustee.
Resulting trust
>lIMITS IT APPLICAITON TO LAND MAY
BE TAKEN TO MEAN THAT NO SUCH
IMPLIED TRUST ARISES WHEN IT COMES
TO OTHER TYPES OF PROPERTY.

Art. 1451 v 1456

The one who acquires a torrens title n his

own name to property which he is
administering for himself and his siblings
as heirs In common by descent from a
common ancestor may be compelled to
surrender each og his co heirs his
appropriate share and a proceedings for
partition is an appropriate remedy by
which to enforce such right.
E.g. page 349

> Art. 1451 do not apply when real

property is unregistered landand no title
has been issued in the name of one of
the co owners and the situation only
shows that he has possession and
enjoyment of the property subject of the
co ownership.
Art. 1455 When trust fund used to
purchase property which is
registered in trustees name
Constructive trust- If the person bpund to
pre existing trustee, guardian or agent
then the better position is to treat such a
situation as constituting resulting trust
since it comes about in breach of
fiduciary duty of loyalty that brought
about that a preexisting contractual
relationship.