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FACTS:
1. Sevenis Enterprises (Sevenis), owner of a parcel of land, engaged in the services of
Jesus Factora for the construction of a 4 storey condominium on the said lot.
2. To finance the construction, Sevenis obtained a loan from Fund Centrum, secured
by a mortgage on the realty project.
3. When Sevenis loan became due, in order for it to settle its obligations, Sevenis
entered into a Memorandum of Agreement (MOA) with Fund Centrum.
o They entered into a Dacion in Payment 1 wherein Sevenis assigned and
conveyed to Fund Centrum the land and improvements therein.
o For the payment of indebtness of Sevenis to Factora, a contractors lien will
be given to Factora and agrees to assign 3 2BR units to come from the
project.
o By virtue of the Dacion in Payment, Sevenis will be relieved from its liability
to Fund and Factora without prejudice to receiving its share in the net
residue.
4. Subsequently, Fund, being the new owner of the condominium building sold the
same to Supreme Capital. In turn, Supreme Capital conveyed the property to MCI
Real Estate and Development (MCI) in a Contract to Sell.
5. MCI then entered into a Lease Agreement with AMA, which converted the
condominium into a computer school.
o The conversion included the 3 2BR units assigned to Factora by virtue of the
MOA.
6. Factora then filed 2 complaints against Fund, Supreme Capital and AMA with the
Office of Appeals, Adjudication and Legal Affairs (OAALA) of the Housing and
Land Use Regulatory Board (HLURB) for the recovery of condominium certificates
of title and damages.
7. OAALA dismissed the complaint for lack of jurisdiction. HLURB affirmed
OOALAs decision.
8. Unsatisfied, Factora elevated the decision to the Office of the President whereby it
granted Factoras appeal and set aside the decision of the HLURB.
o Factora can recover condominium certificates of title.
9. AMA then filed a petition for review with CA.
10. CA dismissed AMAs petition.
11. Hence, this petition.
o AMAs contention:
HLURB has no jurisdiction over the cases because it Factora did not
acquire ownership of the subject condominium units pursuant to the
MOA. Hence, he is not a condominium buyer within the purview of
the The Subdivision and Condominium Buyers Protective Decree
(PD 957).
1Dacion in Payment.
Article 1425. There is dation in payment when property is alienated to the creditor for satisfaction of a debt in money.
Here, the debtor transmits to the creditor the formers ownership over a thing as an accepted equivalent of the payment or
performance of an obligation. Hence, dacion en pago is one mode of extinguishing an obligation.
ISSUE: Whether or not HLURB has jurisdiction over the cases.
HELD: YES.