CONCHITA GLORIA, et al. vs. BUILDERS SAVINGS AND LOAN ASSOCIATION, INC.

G.R. No. 202324; 04 June 2018

Del Castillo, J.

DOCTRINE: No judicial declaration of heirship is necessary in order that an heir may

assert his or her right to the property of the deceased.

FACTS:

Conchita Gloria (Conchita) and her daughter Maria Lourdes Gloria (Lourdes) filed a
complaint against respondent Builders Savings and Loan Association, Inc. (Builders
Savings), Benildo Biag (Biag) and Manuel F. Lorenzo for “declaration of null and void real
estate mortgage, promissory note, cancellation of notation in the transfer certificate of
title, and damages” with prayer for injunctive relief. The RTC ruled in favour of herein
petitioners, but their decision was reversed upon appeal to the Court of Appeals, ruling
inter alia, that Lourdes is not a real party-in-interest in the case because she has failed to
establish that she is a legal heir of Juan and that she inherited the property subject of the
mortgage and, accordingly, a co-owner thereof, and that nothing in the records appear
that a judicial or extrajudicial partition was made by Juan’s heirs.

ISSUE:

Whether or not Lourdes is a co-owner of the real property subject of the mortgage and is
a real party-in-interest in this case.

HELD:

YES. Lourdes is a real party-in-interest in the case.

The evidence reveals that Lourdes is the daughter of Juan and Conchita. There is on
record a Certification of Birth issued by the Lipa City Office of the Local Civil Registrar
indicating that Lourdes was born to Juan and Conchita. Moreover, Lourdes categorically
testified during trial that she was the natural child of Juan and Conchita.

Being the daughter of the deceased Juan and Conchita, Lourdes has an interest in the
subject property as heir to Juan and co-owner with Conchita. The fact that she was not
judicially declared as heir is of no moment, for, as correctly argued by petitioners, there
was no need for a prior declaration of heirship before heirs may commence an action
arising from any right of their predecessor, such as one for annulment of mortgage. No
judicial declaration of heirship is necessary in order that an heir may assert his or her
right to the property of the deceased. The Court has ruled previously that a prior
settlement of the estate is not essential before the heirs can commence any action
pertaining to the deceased, pursuant to Article 777 of the Civil Code, which provides that
“the rights to the succession are transmitted from the moment of the death of the
decedent.”