Pacto De Retro Sale
The essence of a pacto de retro sale is that title and ownership of the property sold is immediately vested in the vendee a retro, subject to the restrictive condition of repurchase by the vendor a retro within the period provided in Article 1606 of the New Civil Code, to wit:
The failure of the vendee a retro to repurchase the property vests upon the latter by operation of law the absolute title and ownership over the property sold. (Cruz vs. Leis, G.R. No. 125233, March 9, 2000; 327 SCRA 570).