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AYING
FACTS:
Crisanta Maloloy-on petitioned for the issuance of a cadastral decree in her
favor over Lot No. 4399 located in Lapu-Lapu City.
Crisanta Maloloy-on died, so the Cadastral court issued a decision directing the
issuance of a decree of title in the name of her 8 children, namely: Juan, Celedonio,
Emiliano, Francisco, Simeon, Bernabe, Roberta and Fausta, all surnamed Aying.
However, the certificate was lost during the war.
All the heirs of the Aying siblings executed an Extra-Judicial Partition of Real
Estate with Deed of Absolute Sale conveying the lot in issue to the Aznar Brothers
Realty Company. The deed was registered with the ROD of Lapu-Lapu City on March
6, 1994 under Act. No. 3344 (the law governing registration of unregistered land,
and since then, the realty company religiously paid the real property taxes on the
property.
Later, Aznar Brothers Realty Company filed a Petition for Reconstitution of
the Original Title since the original title of the lot was lost during the war.
This was granted by the court and the ROD of Lapu-Lapu was directed to issue a
reconstituted title in the name of the Aying Siblings. Thus, OCT No. RO-2856 was
issued.
The Aznar Brothers Realty Company then sent out notices, to vacate the lot, to
the persons occupying the property, reasoning that they were the rightful owner.
The occupants refused to vacate, hence an ejectment case was filed against them
before the MTC. The MTC ordered the occupants to vacate. Eventually, this case
reached the Supreme Court and a decision was rendered in favor of the realty
company declaring them as the rightful possessor of the land.
Meanwhile, persons claiming to be the descendants of the eight Aying siblings,
numbering around 220 persons submitted an amended complaint before the RTC
and alleged that they are co-owners of the land being the descendants of the
registered owners under OCT No. RO-2856; that they had been in actual, peaceful,
physical, open, adverse, continuous and uninterrupted possession in concept of
owner of subject parcel of land since time immemorial; and that the deed of
absolute sale executed in favor of the realty company by the alleged heirs
of Crisanta Maloloy-on is a fraud and is null and void ab initio because not
all the co-owners of subject property affixed their signature on said
document and some of the co-owners who supposedly signed said
document had been dead at the time of the execution thereof; that Aznar
Brothers Realty Company held the land in bad faith, knowing fully well that it did not
have any right to the land and used force, threat and intimidation against them thus
suffering moral damages.
Aznar Brothers Realty Company denied that the Ayings are the lawful owners of
the land and alleged it had been in actual possession of subject land as owner
thereof by virtue of the extra-judicial partition of real property and deed of absolute
sale executed in its favor; that in fact, it had been paying taxes thereon religiously.
The realty company further alleged that they are barred by prescription to file
an action for recovery of property which should be instituted within
4years from discovery of the fraud. It took the Aying heirs 27years to file their
action against the realty company.
ISSUE: Is the registration of the Extra-Judicial Partition of Real Estate with Deed of
Absolute Sale conveying the lot in issue to the Aznar Brothers Realty Company with
the ROD binding and consequently, results in the running of the prescriptive period
for reconveyance?
Held: No. The sale of registered property, recorded in the ROD, cannot be
considered as registered.
Rationale: Jurisprudence dictates that that registration of instruments must be
done in the proper registry, in order to affect and bind the land and, thus, operate
as constructive notice to the world. In this case, the Extrajudicial Partition of Real
Estate with Deed of Absolute Sale was registered under Act No. 3344 and not under
Act No. 496, therefore the document cannot be deemed registered. As consequence
of non-registration, the 10year prescriptive period cannot be reckoned from the date
of registration of the document under Act. No. 3444 since no constructive notice to
the world was perfected by such registration. The prescriptive period only began to
run from the time the Aying heirs had actual notice of the Extra-Judicial Partition of
Real Estate with Deed of Absolute Sale which was not proven by clear and
convincing evidence in this case.
Issue: Is the extra-judicial partition with deed of absolute sale null and void, as
claimed by the Aying Descendants, because not all the co-owners of subject
property affixed their signature on said document and some of the co-owners who
supposedly signed said document had been dead at the time of the execution
thereof?
Held: No. The extra-judicial partition with deed of absolute sale is VALID but only
between the heirs who participated in the execution thereof. Therefore, the heirs
who undisputedly did not participate therein, cannot be bound by said document.
Issue: Does the realty companys defense, that they acquired the entire parcel of
land with the mistaken belief that all the heirs have executed the document, entitle
them to ownership over the land by prescription?
Held: No, Aznar Brothers Realty Company cannot be entitled ownership over the
land based on mistaken belief.
Rationale: The law provides that if property is acquired through mistake or
fraud, the person obtaining it is considered a trustee of an implied trust
for the benefit of the person from whom the property comes. Based on this
rule, a trustee cannot acquire by prescription ownership over property entrusted to
him until and unless he repudiates the trust. However, in constructive implied
trusts, prescription may supervene even if the trustee does not repudiate the
relationship. Necessarily, repudiation of said trust is not a condition precedent to
the running of the prescriptive period.
Notes:
1. Who has the burden of proving that prescription has begun to run?
-Aznar Brothers Realty Company has the burden of proving the running of
prescription because it was the realty company that set up the defense that of
prescription which was denied by the Aying heirs.
2. Does laches apply here?
-No laches will not apply here because the three heirs took action to protect their
interest well within the period prescribed by law.
As the Court accepted and approved in the Bernal case the above final report
on the relocation-verification survey of the regional officer of the Bureau of
Lands and admitted it as evidence of the falsity of the survey plan in
question, there is no reason for this Court not to use it likewise as basis for
reaching. The conclusion that Lots 2 and 4 supposedly covered by the
same Survey Plan II-4374 are purely imaginary and "do not actually exist on
the ground."
We can take judicial notice of innumerable litigations and controversies that
have been spawned by the reckless and hasty grant of such reconstitution of
alleged lost or destroyed titles as well as of the numerous purchasers who
have been victimized only to find that the 'lands' purchased by them were
covered by forged or fake titles or their areas simply 'expanded' through
'table surveys' with the cooperation of unscrupulous officials."
38. Spouses Tan v Republic
39. Recto v Republic
40. Eagle Realty Corporation v. Republic
594 SCRA 555 Civil Law Land Titles and Deeds Innocent Purchaser
Sunshine Finance Doctrine
Eagle Realty Corporation, a company engaged in the real estate business,
bought a parcel of land from a certain Reyes in 1984 via a Deed of Sale. This
Reyes acquired the land from a certain Medina who earlier acquired the said
land via surreptitiously entering a false record in the records of the Land
Registration Commission. Eventually, the true owners of the said land, the de
Leons, discovered that another title was fraudulently issued to Medina over the
same parcel of land. De Leon was able to have the said title annulled as well as
the TCT issued to Eagle Realty by virtue of the Deed of Sale.
ISSUE: Whether or not Eagle Realty is an innocent purchaser.
HELD: No. Based on case law (Sunshine Finance vs IAC, Oct. 28, 1991 / 203
SCRA 210), a corporation engaged in the buying and selling of real estate is
expected to exercise a higher standard of care and diligence in ascertaining the
status and condition of the property subject of its business transaction. Similar
to investment and financing corporations, it cannot simply rely on an
examination of a Torrens certificate to determine what the subject property,
looks like as its condition is not apparent in the document.
laid down would be no more than a dictum, and would deprive the holding in the
case of any force. 5
The other arguments advanced by petitioner are a mere rehash of the
arguments in its previous pleadings, which had already been passed upon
adequately by the Court in the assailed decision.
IN LIGHT OF THE FOREGOING, the Motion for Reconsideration is DENIED
WITH FINALITY for lack of merit.
SO ORDERED.
Ynares-Santiago, Carpio Morales*, Chico-Nazario, Leonardo-De Castro**, JJ.
concur.
Footnotes
* Designated member per raffle dated March 18, 2009.
** Designated additional member per Special Order No. 669 dated July 15, 2009.
1 G.R. Nos. 74070-71, October 28, 1991, 203 SCRA 210.
2 Rollo, pp. 1523-1525.
3 Id. at pp. 1734-1735.
4 Senarillos v. Hermosisima, 101 Phil. 561 (1956).
5 Serrano v. National Labor Relations Commission, 387 Phil. 345, 357 (2000)
41. laxamana v. Carlos
42. Egao v CA
Egao v CA, 174 SCRA 484 G.R. No. 79787, 29 June 1989
Facts: The respondents filed a motion for quieting the title and recovery of possession and ownership against the
petitioners. Apparently, they claim they are the owners of the parcel of land by virtue of the deed of sale they entered
into with Roberto Marfori to whom the petitioners allegedly sold their land to. The Egaos acquired their land title by
virtue of a free patent and transferred their ownership in favor of Marfori by virtue of a deed of sale. However,
the Certificate of Title was not transferred in Marforis favor. Upon purchase of the land from Marfori, the respondents
introduced improvements thereon and paid taxes for the property. However, the petitioners illegally occupied portions
of the land. Petitioner answers that they are the true owner of the land by virtue of the Certificate of Title issued by
the Register of Deeds pursuant to their Free Patent. The lower court ruled in favor of Egao. Upon appeal, the CA
reversed the decision of the lower court on grounds that the main issue should be whether Egao can validly sell the
land to Marfori who subsequently transferred the ownership to the respondents. The CA holds both Egao and Marfori
to be in pari delicto for violating the 5-year restriction provided by Commonwealth 141 against encumbrance
and alienation of public lands acquired thrufree patent or homestead patent. They cannot therefore obtain affirmative
relief. It also declares the respondents as innocent purchasers for value who the obtained the duplicate of the OCT
still in the name of the Egaos from Marfori and ownership was transferred to them by physical possession of the
property. It thus promulgated judgment holding the respondents the absolute owners of the land in dispute, to cancel
the OCT of the petitioner and its transfer thereof to the respondents and to surrender peaceful possession of the land
to the respondents.
Issue: Whether or not the petitioners validly transferred their ownership to Marfori to resolve the rights of the
respondents over the land in dispute?
Ruling: The SC holds that based on the adduced evidence, the Egaos sold the lot to Marfori within the 5-year
restriction period provided by law on Free Patent based on the Deed of Sale entered into by the parties. Although the
petitioners denied the validity of the Deed of Sale the court held that it was notarized and a notarial documenthas in
its favor the presumption of regularity. When the land was sold to the respondents, they know that the OCT is still
registered under the name of the petitioners. Thus, they are not considered to be innocent purchaser as contrary to
the ruling of the CA. Where a purchaser neglects to make the necessary inquiries and closes his eyes to facts which
should put a reasonable man on his guard as to the possibility of the existence of a defect in his vendor's title, and
relying on the belief that there was no defect in the title of the vendor, purchases the property without making any
further investigation, he cannot claim that he is a purchaser in good faith for value. A private individual cannot bring
an action for reversion or any action which would have an effect of canceling a free patent and the certificate of title
issued on the basis thereof since the land covered will form part again of the public domain. Sec. 124 of the Public
Land Act provides that deeds of sale of patented lands, perfected within the prohibited five (5) year period are null
and void thus the Egaos have no title to pass to Marfori and nobody can dispose that which does not belong to him.
The respondents are not innocent purchasers for value with no standing to question the rights of the petitioners over
the land and to file an action to quiet the title. The petitioners remained to be the registered owners and entitled to
remain in physicalpossession of the disputed property. Respondents are ordered to deliver the OCT to the petitioners
without prejudice to an action for reversion of the land to be instituted by the Solicitor General for the State.
any order on the matter, the Register of Deeds asked if he may proceed with
the annotation.
On May 28, 1997, acting on the consulta by the Registry of Deeds of
Pasig City on the propriety of annotating the notice of levy on attachment in
Transfer Certificate of Title (TCT) No. PT-94912, the LRA, however said that
the notice of levy cannot be annotated, except by order of the court.
Petitioner filed a motion for reconsideration. On October 12, 1998, the
LRA issued an Order denying the motion for reconsideration for lack of merit.
Petitioner appealed to the CA. On July 31, 2000, the CA dismissed the
petition.
ISSUES:
I. Whether the notice of levy on attachment may be annotated on TCT
No. PT-94912;
II.
III.
RULING:
FIRST:
The notice of levy on attachment in favor of petitioner may be
annotated on TCT No. PT-94912. The entry of the notice of levy on
attachment in the primary entry book or day book of the Registry of Deeds
on September 14, 1994 is sufficient notice to all persons, including the
respondent, that the land is already subject to an attachment. The earlier
registration of the notice of levy on attachment already binds the land
insofar as third persons are concerned. The fact that the deed of absolute
sale was dated February 24, 1994 is of no moment with regard to third
persons.
SECOND:
Respondent cannot be considered an innocent purchaser for
value. Under the rule of notice, it is presumed that the purchaser has
examined every instrument of record affecting the title. Such presumption is
irrebuttable. He is charged with notice of every fact shown by the record and
is presumed to know every fact shown by the record and to know every fact
which an examination of the record would have disclosed. This presumption
cannot be overcome by proof of innocence or good faith.
THIRD:
The Administrator of the LRA did not commit a reversible error in
referring to the court the propriety of annotating the notice of levy on
attachment.
RATIO:
In this case, the preference created by the levy on attachment is not
diminished by the subsequent registration of the prior sale to respondent.
The attachment that was registered before the sale takes precedence over
the latter. Superiority and preference in rights are given to the registration of
the levy on attachment; although the notice of attachment has not been
noted on the certificate of title, its notation in the book of entry of the
Register of Deeds produces all the effects which the law gives to its
registration or inscription.
The fact that the notice of levy on attachment was not annotated on
the original title on file in the Registry of Deeds, which resulted in its nonannotation on TCT No. PT-94912, should not prejudice petitioner. As long as
the requisites required by law in order to effect attachment are complied
with and the appropriate fees duly paid, attachment is duly perfected. The
attachment already binds the land. This is because what remains to be done
lies not within the petitioner's power to perform but is a duty incumbent
solely on the Register of Deeds.
In this case, since respondent refuses to surrender the owner's
duplicate certificate so that the attachment lien may be annotated, a court
order is necessary in order to compel the respondent to surrender her title.
As a rule, the functions of the Register of Deeds are generally regarded as
ministerial and said officer has no power to pass upon the legality of an order
issued by a court of justice.
PRINCIPLE:
Superiority and preference in rights are given to the registration of the
levy on attachment; Although the notice of attachment has not been noted
on the certificate of title, its notation in the book of entry of the Register of
Deeds produces all the effects which the law gives to its registration or
inscription.
44. Sanchez Jr. v CA
45. Arrazola v. Bernas
46. Government v. Tombis-Trino
47. Republic v. Vera
48. Windows and Orphans Association, inc. v CA