Pando vs.

Gimenez
G.R. No. 31896
February 15, 1930
Antichresis
Art. 2135. The creditor, unless there is a stipulation to the contrary, is obliged to pay the taxes and
charges upon the estate. He is also bound to bear the expenses necessary for its preservation and
repair. The sums spent for the purposes stated in this article shall be deducted from the fruits.
FACTS:
Gimenez was indebted to Pando in the amount of P8000. To secure payment of such loan, he
executed and delivered a real estate mortgage over a building located in Sta. Mesa; and the leasehold
rights on the lot upon which the building was erected, Hacienda Tuason being the lessor.
When Gimenez was about to leave Manila to attend to his business in Cagayan, he gave Pando full
control, and complete and absolute administration over the property he mortgaged, on the condition
that Pando would:
(1) attend to the administration, care and preservation of the building and property
(2) pay the premium on the insurance of the building
(3) pay the taxes that might become due on the building
(4) pay the rents of the leased property
(5) collect the rents from the tenants of the building;
to be applied to the payment of all expenses necessary for the preservation and
maintenance of the building and the rents of the leased property
In the course of Pandos administration over the property, he failed and neglected to pay the taxes
due for several years. He also failed and neglected to pay lessor Hacienda Tuason the rents due for
several years on the land leased. Because of this, the building was sold at a public auction to satisfy
the taxes due. Moreover, lessor Hacienda Tuason cancelled the contract of lease of Gimenez, and
brought a suit against him for desahucio in the municipal court of Manila.
Gimenez is now claiming that Pando, being in charge of the administration of the premises, had the
obligation to attend to the payment of taxes and rents. Pando denies that he had such obligation,
alleging that his duties were confined to the collection of rents on the house in order to apply them to
the payment of the interest on the mortgage.
ISSUE:
Whether or not Pando, having full control and administration over the property of Gimenez, was
obliged to pay the taxes, charges and other necessary expenses.
HELD:
Yes, Pando had such obligation.
The administration of the property assumed by Pando was antichretic in character. Article 2135 of
the Civil Code expressly states that the antichretic creditor is obliged to pay the taxes and charges
which burden the estate, in the absence of an agreement to the contrary. Such obligation arises from
the very nature of the covenant, and is correlated with the antichretic creditors acquired right to take
charge of the property and collect the fruits for himself.
Pando, having failed in his obligation to pay tax on the house and rent of the lot, is now required to
pay indemnity for damages.