Republic of the Philippines

Supreme Court
Manila

SECOND DIVISION


SPOUSES ANSELMO
[!
"n#
PRISCILLA $ULAON%&
Petitioners,




- versus -




VERONICA %ON'ALES&
Respondent.

%(R( No( )*+,

Present:

CARPIO, J., Chairperson,
BRION,
PEREZ,
MENDOZA,
*
and
ERENO, JJ.

Pro!ul"ated:

epte!#er $, %&''
(------------------------------------------------------------------------------------
---------------------(

D E C I S I O N
$RION& J(-

Petitioners Ansel!o Bulaon" and Pris)illa Bulaon" *
)olle)tivel+ re,erred to as t-e Bulaongs * see., t-rou"- t-eir petition
,or revie/ on certiorari, t-e reversal o, t-e de)ision
0%1
o, t-e Court o,
Appeals 2CA3 dated 4ul+ 5', %&&% in CA-6.R. P No. $$7%5 and t-e
su#se8uent resolution o, Nove!#er %9, %&&%
051
reiteratin" t-is
de)ision. :-ese CA rulin"s reversed and set aside t-e de)ision
071
o, t-e
Re"ional :rial Court 2RTC3 o, Malolos, Bula)an, Bran)- '%, t-at
ordered t-e )an)ellation o, :rans,er Certi,i)ate o, :itle 2TCT3 No. :-
;%&&% and :C: No. :-;%&&5.

.AC/UAL AN/ECEDEN/S

:-is )ase tra)es its roots to t-e )on,li)tin" )lai!s o, t/o sets o,
parties over t/o par)els o, land. :-e ,irst par)el o, land, /it- an area
o, %59 s8uare !eters and )overed #+ :C: No. :-%7<;5<,
0$1
/as
ori"inall+ re"istered in t-e na!e o, =ortunato E. >i!po, !arried to
Bert-a >i!po.
0;1
:-e ot-er par)el o, land, /it- an area o, ?; s8uare
!eters and )overed #+ :C: No. :-%7<;7',
091
/as ori"inall+ re"istered
in t-e na!es o, Pa)i,i)a E. >i!po, !arried to Ni)anor C. in)ion)o,
and =ortunato E. >i!po, !arried to Bert-a >i!po.
0?1

:-ese par)els o, land /ere !ort"a"ed #+ t-e dau"-ter o,
=ortunato and Bert-a >i!po, Re"ina C-risti >i!po, upon t-e aut-orit+
o, -er ,at-er,
0<1
to t-e Bulaon"s, to se)ure a loan in t-e a!ount
o,P7,5&&,&&&.&&. :-e !ort"a"e /as eviden)ed #+ a Deed o, Mort"a"e
dated 4anuar+ '5, '<<5.
0'&1

:-e Bulaon"s alle"ed t-at #e,ore t-e+ e(e)uted t-e
!ort"a"e, Re"ina "ave t-e! t-e owners duplicates of title o, t-e t/o
properties. In earl+ 4anuar+
'<<5 2t-e e(a)t date is un.no/n #ut prior to t-e e(e)ution o, t-e
!ort"a"e3, Ansel!o Bulaon", to"et-er /it- -is )ounsel, Att+. Ro#erto
Dionisio, alle"edl+ /ent to t-e O,,i)e o, t-e Re"ister o, Deeds o,
Bula)an to )-e). t-e titles o, t-e properties to #e
!ort"a"ed. Accor#in0 to the $ul"on0s& the Re0ister of Dee#s&
Att1( Elenit" Corpus& "ssure# them th"t /C/ Nos( /2345*+5 "n#
/2345*4 6ere completel1 cle"r of "n1 liens or encumbr"nces from
"n1 p"rt1. Rel+in" on t-is assuran)e, Ansel!o Bulaon" a"reed to t-e
e(e)ution o, t-e !ort"a"e over t-e t/o properties.
0''1


A,ter t-e e(e)ution o, t-e !ort"a"e, t-e Bulaon"s on)e a"ain
/ent to t-e O,,i)e o, t-e Re"ister o, Deeds o, Bula)an to re"ister and
annotate t-e !ort"a"e on t-e titles. :-e+ learned t-en t-at t-e
Re"ister o, Deed@s )opies o, t-e t/o titles /ere a!on" t-e re)ords t-at
/ere #urned in t-e ,ire t-at destro+ed t-e entire o,,i)e o, t-e Re"ister
o, Deeds o, Bula)an on Mar)- 9, '<?9. Att+. Elenita Corpus
)onvin)ed t-e! to )ause t-e re)onstitution o, t-e ori"inals o, t-e titles,
and ,urt-er assured t-e! t-at t-e !ort"a"e over t-e properties /ould
#e prote)ted sin)e a )op+ o, t-e Deed o, Mort"a"e -ad alread+ #een
"iven to -er o,,i)e ,or annotation.
0'%1

On =e#ruar+ 7, '<<5, t-e ne/l+ re)onstituted titles /ere issued
* :C: No. R:-%<7?? repla)ed :C: No. :-%7<;5<, and :C: No. R:-
%%7?< repla)ed :C: No. :-%7<;7', still in t-e na!es o, =ortunato
>i!po, and o, Pa)i,i)a >i!po and =ortunato >i!po, respe)tivel+.

:-erea,ter, on =e#ruar+ %7, '<<5, ne/ titles /ere a"ain issued
upon t-e extrajudicial settlement of the estate of Reginas parents.
:-us, :C: No. R:-%<7?? /as )an)elled and :C: No. :-5&5<$ /as
issued in its pla)e, /it- Re"ina repla)in" -er parents as t-e re"istered
o/nerA si!ilarl+, :C: No. R:-%%7?< /as )an)elled and :C: No. :-
5&5<; /as issued in t-e na!es o, Pa)i,i)a >i!po and Re"ina >i!po,
as -er parents@ -eir.
0'51


:o t-e Bulaon"s@ astonis-!ent, t-e ne/ titles in Re"ina@s na!e
no/ )ontained t-e ,ollo/in" entries:

:C: No. :-5&5<$

Entr+ No. $5&;A Bind: Condition: :-e propert+
-erein des)ri#ed is su#Ce)t to t-e prov. o, se). 7, rule 97
o, t-e rules o, )ourt. date o, instru!ent: '-'5-<5A date
o, ins)ription: %-%7-<5 at '&:7% a.!.

26D.3 E>ENI:A
E. CORPD
Re"ister o,
Deeds

Entr+ No. $7?7A Bind: Mort"a"e: E(e). In ,avor
o,: ps. Ansel!o Bulaon" E Pris)illa Bulaon"A
Condition: Coverin" t-e par)el o, land -erein
des)ri#ed, ,or t-e su! o, P7,5&&,&&&.&& su#Ce)t to all
t-e )onditions stipulated in t-e deed o, !ort"a"e on ,ile
in t-is o,,i)e. Do). No. 7%?, Pa"e ?;, Boo. FFF, . o,
'<<5, N.P. * Ro#erto Dionisio o, Mal. Bul. Date o,
Instru!ent: '-'5-<5A date o, ins)ription * 5-'-<5 at <:%&
a.!.

26D.3 E>ENI:A
E. CORPD
Re"ister o,
Deeds

G$5&;
2NO:E: Pro)eed to Entr+ no. $7?73

Entr+ No. 9?&?: Bind: NO:ICE O= >EHI ON
EFECD:ION: Conditions: Noti)e is -ere#+ "iven t-at
#+ virtue o, t-e Jrit o, E(e)ution, issued in Cri!.
Cases Nos. <;5? to <;7;-M, entitled KPeople o,
t-e P-ilippines v. Re""ie C-risti )-aet)-en >i!po and
Maria >ourdes 2Bon"3 DiaL + 6a!ir, et al., A))usedM
#+ t-e Re"ional :rial Court, :-ird 4ud. Re"ion, Bran)-
'%, Malolos, Bula)an, under date o, De). %<, '<<%, and
at t-e instan)e o, t-e private )o!plainant Heroni)a R.
6onLales, t-ru )ounsel, lev+ on e(e)ution is -ere#+
!ade upon all t-e ri"-ts, s-ares, interests and
parti)ipations o, a))used Re""ie C-risti
)-aet)-en
0'71
over t-e real properties des)ri#ed in :-
%7<;7' and :-%7<;5<, b1 7irtue of Dee#s of Absolute
S"le e8ecute# b1 former re0istere# o6ners in f"7or
of Re00ie Christi Sch"etchen #"te# No7ember )&
55, to"et-er /it- all t-e i!prove!ents e(istin"
t-ereon, /as levied on e(e)ution preparator+ to t-e sale
o, t-e sa!e /it-out preCudi)e to t-ird persons -avin"
#etter ri"-t t-ereo, and to an+ valid lien and
en)u!#ran)es. Date o, instru!ent * 4an. 7, '<<5A Date
o, ins)ription * 4an. 7, '<<5 at '':$& a.!.

26D.3 E>ENI:A
E. CORPD
Re"ister o,
DeedsGne"!
0'$1
2e!p-asis ours3

:C: No. :-5&5<;

Entr+ No. $5&;A Bind: Condition: One--al,
2'G%3 o, t-e propert+ -erein des)ri#ed is su#Ce)t to t-e
prov. o, se). 7, rule 97 o, t-e rules o, )ourt. date o,
instru!ent: '-'5-<5A date o, ins)ription:%-%7-
<5 at '&:7% a.!.

26D.3 E>ENI:A
E. CORPD
Re"ister o,
Deeds

Entr+ No. $7?7A Bind: Mort"a"e: E(e). In ,avor
o,: ps. Ansel!o Bulaon" E Pris)illa Bulaon"A
Condition: Coverin" t-e par)el o, land -erein
des)ri#ed, ,or t-e su! o, P7,5&&,&&&.&& su#Ce)t to all
t-e )onditions stipulated in t-e deed o, !ort"a"e on ,ile
in t-is o,,i)e. Do). No. 7%?, Pa"e ?;, Boo. FFF, . o,
'<<5, N.P. * Ro#erto Dionisio o, Mal. Bul. Date o,
Instru!ent: '-'5-<5A date o, ins)ription * 5-'-<5 at <:%&
a.!.

26D.3 E>ENI:A
E. CORPD
Re"ister o,
Deeds


G$5&;
2NO:E: Pro)eed to Entr+ No. $7?73

Entr+ No. 9?&?: Bind: NO:ICE O= >EHI ON
EFECD:ION: Conditions: Noti)e is -ere#+ "iven t-at
#+ virtue o, t-e Jrit o, E(e)ution, issued in Cri!.
Cases Nos. <;5? to <;7;-M, entitled KPeople o,
t-e P-ilippines v. Re""ie C-risti )-aet)-en >i!po and
Maria >ourdes 2Bon"3 DiaL + 6a!ir, et al., A))usedM
#+ t-e Re"ional :rial Court, :-ird 4ud. Re"ion, Bran)-
'%, Malolos, Bula)an, under date o, De). %<, '<<%, and
at t-e instan)e o, t-e private )o!plainant Heroni)a R.
6onLales, t-ru )ounsel, lev+ on e(e)ution is -ere#+
!ade upon all t-e ri"-ts, s-ares, interests and
parti)ipations o, a))used Re""ie C-risti )-aet)-en
over t-e real properties des)ri#ed in :-%7<;7' and :-
%7<;5<, b1 7irtue of Dee#s of Absolute S"le e8ecute#
b1 former re0istere# o6ners in f"7or of Re00ie
Christi Sch"etchen #"te# No7( )& 55& to"et-er /it-
all t-e i!prove!ents e(istin" t-ereon, /as levied on
e(e)ution preparator+ to t-e sale o, t-e sa!e /it-out
preCudi)e to t-ird persons -avin" #etter ri"-t t-ereo,
and to an+ valid lien and en)u!#ran)es. Date o,
instru!ent * 4an. 7, '<<5A Date o, ins)ription * 4an. 7,
'<<5 at '':$& a.!.

26D.3 E>ENI:A
E. CORPD
Re"ister o,
DeedsGne"!
0';1
2e!p-asis ours3


It appears t-at a )ertain Heroni)a 6onLales -ad ,iled a )ri!inal
)ase ,or esta,a a"ainst Re"ina /it- t-e R:C o, Bula)an, Bran)- '%.
0'91
On O)to#er %?, '<<', t-e R:C rendered a de)ision
a)8uittin"Re"ina, #ut at t-e sa!e ti!e orderin" -er to pa+ Heroni)a
a)tual da!a"es in t-e total a!ount o, P%9$,&&&.&&.
0'?1
B+ virtue o, a
/rit o, e(e)ution issued on De)e!#er %<, '<<%, t-e a#ove-8uoted
noti)e o, lev+ /as re)orded in t-e Pri!ar+ Entr+ Boo. o, t-e Re"istr+
o, Bula)an on 4anuar+ 7, '<<5. No/ever, t-is /as not annotated on t-e
titles t-e!selves #e)ause at the time of the lev, the properties had not
et !een transferred to Regina, !ut were still registered in the name of
her parents.
0'<1

Based on t-e annotation re,errin" to t-e noti)e o, lev+, t-e
su#Ce)t o, t-e lev+ /as Re"ina@s interest in t-e properties /-i)-, in
turn, /as an)-ored on a Deed o, A#solute ale alle"edl+ e(e)uted #+
-er parents on Nove!#er $, '<<' to trans,er t-eir interest in #ot-
properties to -er. Nota#l+, Regina never registered this sale with the
Register of Deeds.

:o satis,+ Re"ina@s Cud"!ent de#t, t-e t/o lots /ere sold at
pu#li) au)tion on 4une ?, '<<5 to Heroni)a, t-e onl+ #idder,
,or P;7&,5$7.'7.
0%&1
:-e Certi,i)ate o, ale /as annotated on t-e titles
on4une ?, '<<5 as Entr+ No. %&9$. Dpon t-e lapse o, t-e one +ear
rede!ption period on 4une %&, '<<7, Heroni)a@s titles over t-e
properties /ere )onsolidated. A ,inal deed o, sale /as issued in
Heroni)a@s na!e and annotated as Entr+ No. 7&7%$ on :C: Nos. :-
5&5<$ and :-5&5<; on 4une %7, '<<7.
0%'1


On t-e ot-er -and, t-e Bulaon"s also -ad t-e !ort"a"e
e(traCudi)iall+ ,ore)losed, /it- t-e s-eri,, )ondu)tin" t-e au)tion sale
on Au"ust %%, '<<7. :-e Bulaon"s /ere t-e -i"-est #idders, #u+in"
t-e properties ,or t-e su! o, P7,5&&,&&&.&&. :-e+ also paid t-e
)orrespondin" )apital "ains ta( o, P%'$,&&&.&&, plus P;7,$&&.&& ,or
t-e do)u!entar+ sta!p ta(, /-i)- /ere re8uired #e,ore t-e titles to t-e
lots )ould #e trans,erred in t-eir na!es. :-e Certi,i)ate o, ale in t-eir
,avor /as ins)ri#ed on Au"ust %5, '<<7 on :C: No. :-5&5<$ and :C:
No. :-5&5<; as Entr+ No. 7;95<.
0%%1

Heroni)a t-erea,ter ,iled a petition ,or t-e surrender to t-e
Re"ister o, Deeds o, t-e o/ner@s )opies o, :C: Nos. :-5&5<$ and :-
5&5<; /it- t-e R:C o, Malolos, do).eted as >RC Case No. P-%<%. On
De)e!#er ';, '<<7, t-e R:C "ranted t-e petition and ordered Re"ina
to surrender -er o/ner@s )opies o, t-e titlesA s-ould Re"ina ,ail to
)o!pl+, t-e R:C ordered t-e Re"ister o, Deeds to )an)el t-ese titles
and issue ne/ ones in Heroni)a@s na!e. Co!pl+in" /it- t-is order,
t-e Re"ister o, Deeds )an)elled :C: Nos. :-5&5<$ and :-5&5<;, and
issued :C: No. :-;%&&% in Heroni)a@s na!e, and :C: No. :-;%&&5 in
t-e na!e o, Heroni)a and Pa)i,i)a >i!po. /hese ne6 titles 6ere
9cle"n: "n# #i# not cont"in "n1 "nnot"tions& liens or
encumbr"nces.

:-e Bulaon"s t-us ,iled a petition ,or !anda!us /it- t-e R:C
o, Bula)an a"ainst Ra!on a!pana, t-e in)u!#ent Re"ister o, Deeds
o, Bula)an, and Heroni)a, pra+in" t-at t-e )ourt order a!pana to
)an)el :C: Nos. :-;%&&% and :-;%&&5, and issue ne/ titles in t-eir
na!esA and order t-e respondents t-erein to pa+ t-e! !oral and
e(e!plar+ da!a"es, and attorne+@s ,ees.

On 4ul+ 5&, '<<<, t-e R:C ruled in ,avor o, t-e Bulaon"s.
A))ordin" to t-e R:C, allo/in" Heroni)a to lev+ on t-e properties
/ort- at least P$,&&&,&&&.&& ,or a Cud"!ent o, P%9$,&&&.&& /ould
result in "ross unCust enri)-!ent. :-e R:C t-us ordered t-e Re"ister
o, Deeds o, Bula)an to issue ne/ titles in t-e na!e o, t-e Bulaon"s,
#ut onl+ a,ter t-e Bulaon"s -ad rei!#ursed t-e a!ount o, P%9$,&&&.&&
to Heroni)a, /it- interest. :-e R:C also ordered Heroni)a to pa+ t-e
Bulaon"s P$&,&&&.&& as attorne+@s ,ees. :-e dispositive portion o, t-e
R:C de)ision reads:

JNERE=ORE, )on,or!a#l+ /it- all t-e
,ore"oin", Cud"!ent is -ere#+ rendered:

'. * Annullin" and )an)ellin" :rans,er Certi,i)ates
o, :itle Nos. :-;%&&% in t-e na!e o, de,endant
Heroni)a 6onLales, and :-;%&&5 in t-e na!e o,
de,endant Heroni)a 6onLales and Pa)i,i)a E. >i!po
!arried to Ni)anor C. in)io)oA

%. * Orderin" t-e E(-O,,i)io -eri,, o, Bula)an to
e(e)ute a ,inal deed o, sale in ,avor o, petitioner
spouses Ansel!o Bulaon" and Pr0i1s)illa Bulaon"
on t-e #asis o, t-e re"istered Certi,i)ate o, ale
e(e)uted #+ said )ourt o,,i)er on Au"ust %5, '<<7,
in ,avor o, said spouses-!ort"a"ee, /it-out t-e
o/ner-!ort"a"ors e(er)isin" t-e ri"-t o,
rede!ption sin)e t-enA

5. * Orderin" t-e Re"ister o, Deeds o, Bula)an to
issue ne/ titles, in pla)e o, :rans,er Certi,i)ate o,
:itle Nos. :-;%&&% and :-;%&&5, t-is ti!e in t-e
na!e o, petitioner spouses Ansel!o Bulaon" and
Pr0is1)illa Bulaon", as soon as t-e a,oresaid ,inal
deed o, sale in t-eir ,avor is e(e)uted #+ t-e E(-
O,,i)io -eri,, o, Bula)an and onl+ a,ter said
spouses s-all -ave paid andGor rei!#ursed Heroni)a
6onLales@ lien as Cud"!ent )reditor in t-e a!ount
o, P%9$,&&&.&&, plus interests at t-e le"al rate
)o!puted ,ro! Nove!#er '<, '<<$, until ,ull+ paid
and satis,iedA
7. * Order0in"1 -erein de,endants Heroni)a R.
6onLales and t-e Re"ister o, Deeds o, Bula)an
upon noti)e o, t-is Cud"!ent, not to e,,e)t an+
trans,er, en)u!#ran)e or an+ disposition
/-atsoever o, t-e par)els o, land )overed #+
:rans,er Certi,i)ates o, :itle Nos. ;%&&% and :-
;%&&5, or an+ part t-ereo,, ri"-t or interest t-erein,
eit-er #+ sale or an+ ,or! o, )onve+an)e, lien or
en)u!#ran)eA and

$. * Orderin" onl+ de,endant Heroni)a R. 6onLales
to pa+ -erein petitioners P$&,&&&.&& as Cust and
e8uita#le attorne+@s ,ees, and t-e )osts o, suit,
de,endant Ra!on C. a!pana as t-e Re"ister o,
Deeds o, Bula)an -avin" !erel+ per,or!ed -is
!inisterial dut+ o, ,ollo/in" t-e )ourt order o,
issuin" titles to de,endant 6onLales.

No pronoun)e!ent as to !oral and e(e!plar+
da!a"es alle"ed in t-e petition #ut not even testi,ied to
#+ petitioners at t-e trial.
0%51


Bot- parties appealed to t-e CA, /it- t-e )ase do).eted as CA-
6.R. P No. $$7%5.

/;E COUR/ O. APPEALS DECISION

In its 4ul+ 5', %&&% de)ision, t-e CA up-eld t-e validit+ o, t-e
Noti)e o, >ev+ on E(e)ution, notin" t-at it )reated a lien in ,avor o,
t-e Cud"!ent )reditor over t-e propert+. A))ordin" to t-e CA, /-en
t-e Bulaon"s re)eived t-e o/ners@ )opies o, :C: Nos. :-5&5<$ and :-
5&5<;, t-e Noti)e o, >ev+ /as alread+ annotated on t-e titles and,
t-us, s-ould -ave put t-e! on "uard. As !ort"a"ees o, t-e lots, t-e
Bulaon"s -ad t-e option to redee! t-e properties /it-in t-e
rede!ption period provided #+ la/. in)e t-e+ ,ailed to avail o, t-is
re!ed+, t-e )onsolidation o, titles in Heroni)a@s na!e /as proper.

/;E PE/I/ION

:-e Bulaon"s ,iled t-e present petition, raisin" t-e ,ollo/in"
issues:

a3 J-et-er Entr+ No. 9?&? is validA
#3 J-et-er Heroni)a -as a superior ri"-t over t-e
propertiesA and

)3 Assu!in" t-e noti)e o, lev+ earlier annotated in ,avor
o, Heroni)a to #e valid, /-et-er t-ere /as a valid
,ore)losure sale.

/;E COUR/<S RULIN%

=e %RAN/ the petition(

Procedural issues

:i!e and a"ain, /e -ave stated t-at petitions ,or revie/
on certiorari s-all onl+ raise 8uestions o, la/, as 8uestions o, ,a)t are
not revie/a#le #+ t-is Court. :-e !ain issue o, /-o -as a #etter ri"-t
over t-e disputed properties is not onl+ a 8uestion o, la/ #ut one t-at
re8uires a t-orou"- revie/ o, t-e presented eviden)e, in vie/
parti)ularl+ o, t-e Bulaon"s@ alle"ation t-at ,raud attended t-e
annotation o, Entr+ No. 9?&? in t-e titles. :-us, in t-e usual )ourse,
/e /ould -ave denied t-e present petition ,or violation o, e)tion ',
Rule 7$ o, t-e Rules o, Court, /-i)- provides:

Section ( "iling of petition with #upreme
Court. O A part+ desirin" to appeal #+ certiorari ,ro!
a Cud"!ent or ,inal order or resolution o, t-e Court o,
Appeals, t-e andi"an#a+an, t-e Re"ional :rial Court
or ot-er )ourts /-enever aut-oriLed #+ la/, !a+ ,ile
/it- t-e upre!e Court a veri,ied petition ,or revie/
on certiorari. /he petition sh"ll r"ise onl1 >uestions
of l"6 6hich must be #istinctl1 set forth( 2e!p-asis
ours3

:-is rule, -o/ever, ad!its o, several e()eptions. Puestions o,
,a)t !a+ #e revie/ed, a!on" ot-ers, /-en t-e lo/er )ourt !a.es
in,eren)es t-at are !ani,estl+ !ista.en, and /-en t-e Cud"!ent o, t-e
CA is #ased on a !isappre-ension o, ,a)ts.
0%71
As /ill #e apparent in
t-e dis)ussions #elo/, t-ese e()eptional )ir)u!stan)es are present in
t-e present )ase. A revie/ o, t-e eviden)e, t-ere,ore, is not onl+
allo/ed, #ut is ne)essar+ ,or t-e proper resolution o, t-e presented
issues.

It -as not es)aped our attention t-at t-e Bulaon"s appear to
-ave erroneousl+ ,iled a petition ,or !anda!us ,or /-at is essentiall+
an a)tion to assail t-e validit+ o, Heroni)a@s )erti,i)ates o, title over t-e
su#Ce)t properties. :-is lapse, -o/ever, is not le"all+ si"ni,i)ant under
t-e /ell-settled rule t-at t-e )ause o, a)tion in a )o!plaint is not t-e
title or desi"nation o, t-e )o!plaint, #ut t-e alle"ations in t-e #od+ o,
t-e )o!plaint. :-e desi"nation or )aption is not )ontrollin" as it is not
even an indispensa#le part o, t-e )o!plaintA t-e alle"ations o, t-e
)o!plaint )ontrol.
0%$1
Je t-us pro)eed to resolve t-e )ase, #earin" in
!ind t-at t-e relie, t-e Bulaon"s sou"-t #e,ore t-e lo/er )ourt /as to
nulli,+ Heroni)a@s )erti,i)ates o, title and to order t-e Re"ister o,
Deeds to issue ne/ titles in t-eir na!e.

Redemption not the proper remedy

:-e CA ,aulted t-e Bulaon"s ,or not redee!in" t-e properties
,ro! Heroni)a /-en t-e+ -ad t-e option o, doin" so. =or ,ailin" to
e(er)ise t-is ri"-t, t-e CA )on)luded t-at t-e )onsolidation o, t-e titles
to t-e lots in Heroni)a@s na!e t-us #e)a!e a !atter o, )ourse.

Je disa"ree.

At t-e outset, /e o#serve t-at t-is is not a si!ple )ase o,
deter!inin" /-i)- lien )a!e ,irst. A perusal o, t-e Bulaon"s@
su#!issions to t-e Court s-o/s t-at t-e+ -ave )onsistentl+ !aintained
t-at t-e lev+ and t-e )orrespondin" e(e)ution sale in Heroni)a@s ,avor
are null and void. Nad t-e Bulaon"s !erel+ e(er)ised t-e ri"-t o,
rede!ption, t-e+ /ould -ave #een #arred ,ro! raisin" t-ese issues in
)ourt, pursuant to our rulin" in Cometa v. $ntermediate Appellate
Court:
0%;1

:-e respondent appellate )ourtQs e!p-asis on
t-e ,ailure o, t-e petitioner to redee! t-e properties
/it-in t-e period re8uired #+ la/ is !ispla)ed #e)ause
rede!ption, in t-is )ase, is in)onsistent /it- t-e
petitionerQs )lai! o, invalidit+ o, lev+ and
sale. Re#emption is "n implie# "#mission of the
re0ul"rit1 of the s"le "n# 6oul# estop the petitioner
from l"ter impu0nin0 its 7"li#it1 on th"t 0roun#(
[3?!
2e!p-asis ours3



:-e Bulaon"s /ere t-us Custi,ied in t-eir re,usal to redee! t-e
properties.

Annotation is valid

:-e Bulaon"s assail t-e validit+ o, Entr+ No. 9?&? 2relatin" to
t-e Noti)e o, >ev+ on E(e)ution in Heroni)a@s ,avor3 on t-e t/o titles,
assertin" t-at it is null and void ,or #ein" a ,raudulent entr+. In support
o, t-is )ontention, t-e+ note t-e ,ollo/in" suspi)ious )ir)u!stan)es:
2a3 alt-ou"- Entr+ No. 9?&? -as a -i"-er nu!#er and appears a,ter
Entr+ No. $7?7 2)orrespondin" to t-e Bulaon"s@ !ort"a"e3 on t-e
titles, Entr+ No. 9?&? appeared in an earlier volu!e o, t-e Boo. o,
EntriesA and 2#3 alt-ou"- t-e Noti)e o, >ev+ on E(e)ution /as
purportedl+ presented to t-e Re"istr+ o, Bula)an on 4anuar+ 7, '<<5,
or prior to t-e date /-en t-e Bulaon"s@ deed o, !ort"a"e /as
presented on 4anuar+ '5, '<<5, t-e Noti)e o, >ev+ on E(e)ution, Entr+
No. 9?&?, /as nu!#ered and pla)ed after t-e !ort"a"e, Entr+ No.
$7?7, on t-e titles.

Je a"ree t-at t-ese )ir)u!stan)es render t-e Noti)e o, >ev+
on E(e)ution, annotated on t-e titles, -i"-l+ suspi)ious. :-ese
)ir)u!stan)es, -o/ever, )an #e su,,i)ientl+ e(plained /-en t-e
re)ords are e(a!ined.

:-e re)ords s-o/ t-at on 4anuar+ 7, '<<5, Heroni)a /ent to t-e
Re"istr+ o, Bula)an /it- t-e Noti)e o, >ev+ on E(e)ution, re8uestin"
t-at t-e noti)e #e re"istered. J-ile t-e Re"ister o, Deeds pla)ed t-e
Noti)e o, >ev+ on E(e)ution in t-e Pri!ar+ Entr+ Boo., s-e did not
i!!ediatel+ !a.e a re"istration /-en a 8uestion arose re"ardin" t-e
re"istra#ilit+ o, t-e noti)eA t-e 8uestion ne)essitated t-e su#!ission o,
a consulta to t-e >and Re"istration Aut-orit+ 2%RA3 on 4anuar+ %$,
'<<5.
0%?1

:-e >RA Ad!inistrator responded to t-e consulta onl+
on =e#ruar+ '&, '<<5.
0%<1
:-us, t-e Noti)e o, >ev+ on E(e)ution /as
not i!!ediatel+ annotated on t-e ne/l+ re)onstituted titles, /-i)-
/ere issued on =e#ruar+ 7, '<<5. It /as onl+ /-en ne/ titles /ere
a"ain issued to re,le)t t-e e(traCudi)ial settle!ent o, t-e estate
o, Re"ina@s parents on =e#ruar+ %7, '<<5 t-at t-e Noti)e o, >ev+ on
E(e)ution appeared on t-e titles as Entr+ No. 9?&?.

:-e apparent dis)repan)+ in t-e nu!#erin" o, t-e Noti)e o,
>ev+ on E(e)ution and t-e date o, ins)ription on t-e )erti,i)ates o,
title is suita#l+ e(plained #+ e)tion $; o, Presidential De)ree No.
'$%< /-ose pertinent portion states:

e)tion $;. &rimar 'ntr Boo() fees) certified
copies. * Ea)- Re"ister o, Deeds s-all @eep " prim"r1
entr1 boo@ in 6hich, upon pa+!ent o, t-e entr+
,ee, he sh"ll enter& in the or#er of their reception& "ll
instruments inclu#in0 copies of 6rits "n# processes
file# 6ith him relatin" to re"istered land. Ne s-all, as a
preli!inar+ pro)ess in re"istration, note in such boo@
the#"te& hour "n# minute of reception of "ll
instruments& in the or#er in 6hich the1 6ere
recei7e#( :-e+ s-all #e re"arded as re"istered ,ro! t-e
ti!e so noted, and the memor"n#um of e"ch
instrument& 6hen m"#e on the certific"te of title to
6hich it refers& sh"ll be"r the s"me #"te: Provided,
t-at t-e national "overn!ent as /ell as t-e provin)ial
and )it+ "overn!ents s-all #e e(e!pt ,ro! t-e pa+!ent
o, su)- ,ees in advan)e in order to #e entitled to entr+
and re"istration. 0e!p-ases ours1


In ot-er /ords, t-e order o, entries in t-e Pri!ar+ Entr+ Boo.
deter!ines t-e priorit+ in re"istration. :-us, t-e Re"ister o, Deeds
!erel+ )o!plied /it- t-e la/ /-en s-e ,i(ed Entr+ No. 9?&?@s date o,
ins)ription as 4anuar+ 7, '<<5, to )oin)ide /it- t-e date /-en t-e
Noti)e o, >ev+ on E(e)ution /as presented and ins)ri#ed in t-e
Pri!ar+ Entr+ Boo..

:-e late annotation o, t-e lev+ on e(e)ution on t-e titles did
not at all lessen its e,,e)tivit+. 4urispruden)e -as alread+ esta#lis-ed
t-e rule t-at t-e entr+ o, t-e noti)e o, lev+ on e(e)ution in t-ePri!ar+
Entr+ Boo., even /it-out t-e )orrespondin" annotation on t-e
)erti,i)ate o, titles, is su,,i)ient noti)e to all persons t-at t-e land is
alread+ su#Ce)t to t-e lev+.
05&1
As /e e(plained in Armed "orces and
&olice *utual Benefit Association, $nc. v. #antiago:
05'1

:-e noti)e o, lev+ on atta)-!ent in ,avor o,
petitioner !a+ #e annotated on :C: No. P:-
<7<'%. %evin v. Bass 2<' P-il. 7%& 0'<$%1A see also +r.
Caviles, Jr. v. Bautista, 599 P-il. %$A 5'< CRA %7
0'<<<1A ,arcia v. Court of Appeals, '?7 P-il. 5$?A <$
CRA 5?& 0'<?<&13 provided t-e distin)tion #et/een
voluntar+ re"istration and involuntar+ re"istration.
In voluntary registration, su)- as a sale, !ort"a"e,
lease and t-e li.e, i, t-e o/nerQs dupli)ate )erti,i)ate #e
not surrendered and presented or i, no pa+!ent o,
re"istration ,ees #e !ade /it-in ,i,teen 2'$3 da+s, entr+
in t-e da+ #oo. o, t-e deed o, sale does not operate to
)onve+ and a,,e)t t-e land sold. In involuntary
registration, su)- as an atta)-!ent, lev+ upon
e(e)ution, lis pendens and t-e li.e, entr1 thereof in
the #"1 boo@ is " sufficient notice to "ll persons of
such "#7erse cl"im(

:-e entr+ o, t-e noti)e o, lev+ on atta)-!ent in
t-e pri!ar+ entr+ #oo. or da+ #oo. o, t-e Re"istr+ o,
Deeds on epte!#er '7, '<<7 is su,,i)ient noti)e to all
persons, in)ludin" t-e respondent, t-at t-e land is
alread+ su#Ce)t to an atta)-!ent. /he e"rlier
re0istr"tion of the notice of le71 on "tt"chment
"lre"#1 bin#s the l"n# insof"r "s thir# persons "re
concerne#(
05%1
2e!p-ases ours3


Conse8uentl+, /-en t-e Re"ister o, Deeds pla)ed t-e Noti)e o,
>ev+ on E(e)ution in t-e Pri!ar+ Entr+ Boo. on 4anuar+ 7, '<<5, t-is
entr+ alread+ #ound t-ird persons to t-e noti)e entered.

Validity of the Levy

i. Reginas interest in the properties is not established

:-e lev+ on e(e)ution ,or Cud"!ent is Kt-e a)t ( ( ( #+ /-i)-
an o,,i)er sets apart or appropriate0s,1 ,or t-e purpose o, satis,+in" t-e
)o!!and o, t-e /rit, a part or t-e /-ole o, t-e Cud"!ent de#tor@s
propert+.M
0551
Ever+ interest /-i)- t-e Cud"!ent de#tor !a+ -ave in
t-e propert+ !a+ #e su#Ce)ted to lev+ on e(e)ution.
0571
As esta#lis-ed
#+ t-e Court in Rees v. ,re:
05$1

:-e ter! Rpropert+R as -ere applied to lands
)o!pre-ends ever+ spe)ies o, title, incho"te or
completeA le0"l or e>uit"ble. :-is statute aut-oriLes
t-e sale under e(e)ution o, ever+ .ind o, propert+,
and every interest in propert+ /-i)- is, or !a+ #e, t-e
su#Ce)t o, private o/ners-ip and trans,er. It deals /it-
e8uita#le ri"-ts and interests as it deals /it- le"al,
/it-out an+/-ere e(pressl+ re)o"niLin" or !a.in" an+
distin)tion #et/een t-e!. 0e!p-ases ours1


In Rees, t-e Court set t-e standard to #e applied in
deter!inin" t-e .ind o, propert+ t-at )an #e su#Ce)t to atta)-!ent:

Je t-in. t-e real test, as to /-et-er or not propert+ )an
#e atta)-ed and sold upon e(e)ution is O #oes the
Au#0ment #ebtor hol# such " benefici"l interest in
such propert1 th"t he can sell orotherwise dispose
of it for 7"lueS I, -e does, t-en t-e propert+ is su#Ce)t
to e(e)ution and pa+!ent o, -is de#ts.
05;1
2e!p-asis
and unders)orin" ours3


Appl+in" t-e test in Rees, t-e Court, in ,otauco - Co. v.
Register of +eeds of Taa!as,
0591
re)o"niLed as valid t-e ins)ription o,
a noti)e o, lev+ on e(e)ution on t-e )erti,i)ates o, title, even t-ou"-
t-e titles /ere not in t-e na!e o, t-e Cud"!ent de#tor 2Ra,ael Hilar3.
A))ordin" to t-e Court, /-ile t-e )erti,i)ates o, title /ere still
re"istered in t-e na!e o, =lorentino Hilar, sin)e Ra,ael Hilar presented
a )op+ o, a petition ,iled /it- t-e lo/er )ourt, ,ro! /-i)- it )ould #e
in,erred t-at =lorentino Hilar /as dead and Ra,ael Hilar /as one o, -is
-eirs, Ra,ael -ad an interest in =lorentino@s propert+ t-at )ould
properl+ #e t-e su#Ce)t o, atta)-!ent, e7en if his p"rticip"tion in
.lorentino<s propert1 6"s indeterminable before the fin"l
li>ui#"tion of the est"te(


i!ilarl+, in &acific Commercial Co. v. ,eaga,
05?1
t-e Court
-eld t-at alt-ou"- t-e Re"ister o, Deeds !a+ properl+ reCe)t an
atta)-!ent /-ere it appears t-at t-e titles involved are not re"istered
in t-e na!e o, t-e de,endants 2de#tors3, t-at rule +ields to a )ase /-ere
t-ere is eviden)e su#!itted to indi)ate t-at t-e de,endants -ave present
or future interests in t-e propert+ )overed #+ said titles, re"ardless o,
/-et-er t-e+ still stand in t-e na!es o, ot-er persons. :-e ,a)t t-at t-e
present interests o, t-e de,endants are still indeter!inate, and even
t-ou"- t-ere /as no Cudi)ial de)laration o, -eirs-ip +et, is o, no
)onse8uen)e ,or t-e purpose o, re"isterin" t-e atta)-!ent in 8uestion.
:-is is t-e )ase sin)e 6h"t is bein0 "tt"che# "n# 6h"t m"1 be l"ter
sol# "t public "uction in pursu"nce of the "tt"chment c"nnot be
"n1thin0 more th"n 6h"te7er ri0hts& titles& interests "n#
p"rticip"tions 6hich the #efen#"nts m"1 or mi0ht h"7e in the
propert1 so "tt"che#( In ot-er /ords, i, t-e+ -ad a)tuall+ not-in" in
t-e propert+, t-en not-in" is a,,e)ted and t-e propert+ /ill re!ain
inta)t.
05<1
:-is rule is e(pressed in e)tion 5$, Rule 5< o, t-e old Rules
o, Civil Pro)edure, /-i)- provides:

Dpon t-e e(e)ution and deliver+ o, said deed
0o, )onve+an)e and possession1, t-e pur)-aser, or
rede!ptioner, or -is assi"nee, s-all #e su#stituted to
and "c>uire "ll the ri0ht& title& interest "n# cl"im of
the Au#0ment #ebtor to the propert1 "s of the time of
the levy[(! 0e!p-ases ours1


Alt-ou"- /e re)o"niLe t-e validit+ o, t-e annotation o, t-e
lev+ on t-e e(e)ution in t-e present )ase, t-e 8uestion o, /-et-er t-e
lev+ itsel, is valid re!ains to #e deter!ined. :o do t-is, Re"ina@s
interest in t-e su#Ce)t properties at t-e ti!e o, t-e lev+ -as to #e
as)ertained. :o re)all, Heroni)a@s noti)e o, lev+ on e(e)ution is #ased
on Re"ina@s interest in t-e t/o properties, /-i)- s-e a)8uired via t-e
Deed o, A#solute ale purportedl+ e(e)uted #+ -er parents in -er
,avor on Nove!#er $, '<<'. But is t-is Deed o, A#solute ale a
su,,i)ient eviden)e o, Re"ina@s interest in t-e su#Ce)t propertiesS

A,ter )are,ull+ revie/in" t-e eviden)e on re)ord, /e rule in t-e
ne"ative.

:o #e"in /it-, not onl+ /ere t-e properties su#Ce)t o, t-e
atta)-!ent not re"istered in Re"ina@s na!e, t-e Deed o, A#solute ale
on /-i)- Re"ina #ased -er interest was not even annotated on these
titles. J-ile Re"ina purportedl+ pur)-ased -er parents@ ri"-ts to t-e
su#Ce)t properties in '<<', s-e never asserted -er ri"-ts over t-ese
properties #+ presentin" t-e Deed o, A#solute ale to t-e Re"ister o,
Deeds ,or re"istration and annotation on t-e titles. As a !atter o, ,a)t,
it /as Heroni)a, and not Re"ina, /-o presented t-e Deed o, A#solute
ale to t-e Re"ister o, Deeds.

More i!portantl+, ,ro! t-e re)ords, it is )lear t-at the subAect
properties 6ere fin"ll1 re0istere# in Re0in"<s n"me& not b1 7irtue
of the 55 Dee# of Absolute S"le& but by virtue of succession,
spe)i,i)all+ #+ t-e KAdCudi)ationM t-at Re"ina ,iled /it- t-e Re"ister
o, Deeds on =e#ruar+ %7, '<<5,
07&1
pursuant to e)tion ', Rule 97 o,
t-e Rules o, Court.
07'1
:-e pro)edure #+ /-i)- t-e properties /ere
re"istered in Re"ina@s na!e su""ests t-at /-en Re"ina@s parents died,
t-e su#Ce)t lots still ,or!ed part o, Re"ina@s parents@ estate, and /ere
not, as Heroni)a )lai!s, sold to Re"ina in '<<', t-ere#+ )astin" dou#t
to t-e validit+ o, t-e Deed o, A#solute ale. As t-e Bulaon"s reason in
t-eir !e!orandu!, i, t-e su#Ce)t properties -ad alread+ #een sold
to Re"ina as earl+ as '<<', /-+ /ould t-e+ still #e )onsidered a part
o, -er parents@ estate in '<<5S
07%1

Anot-er point to )onsider is t-at Re"ina dealt /it- t-e
Bulaon"s as -er ,at-er@s representative /-en t-e+ /ere ne"otiatin" t-e
!ort"a"e over t-e properties.
0751
I, s-e -ad alread+ a)8uired -er
parents@ interest in t-ese properties in '<<', s-e /ould not -ave
needed an+ aut-orit+ ,ro! -er ,at-er to e(e)ute t-e !ort"a"e /it- t-e
Bulaon"sA s-e /ould -ave done so in -er o/n )apa)it+.

:-ese ,a)ts, ta.en to"et-er, lead us to dou#t t-at Re"ina -ad
an+ interest in t-e properties at t-e ti!e o, t-e lev+. :-us, unli.e in t-e
previousl+ )ited )ases /-ere t-e de#tors, alt-ou"- possessin" !erel+
an in)-oate interest in t-e properties at t-e ti!e o, t-e lev+, -ad
interests t-at /ere esta#lis-ed /it- reasona#le )ertaint+ and )ould #e
t-e su#Ce)t o, atta)-!entA in t-e present )ase, the e7i#ence on recor#
f"ils to pro7e th"t Re0in" "ctu"ll1 h"# any interest in the
properties 6hich coul# be the subAect of le71(

:-e sprin" )annot rise -i"-er t-an its sour)e.
0771
in)e Re"ina -ad no esta#lis-ed interest in t-e su#Ce)t properties at
t-e ti!e o, t-e lev+, Heroni)a@s lev+ -ad not-in" to atta)- to in t-e
su#Ce)t properties.

ii. nregistered sale of land cannot bind third parties

Even assu!in" t-at t-e Deed o, A#solute ale in Re"ina@s
,avor /as valid, /e still )annot up-old t-e validit+ o, t-e lev+ and
e(e)ution sale in Heroni)a@s ,avor.

:-e "eneral rule in dealin" /it- re"istered land is set ,ort- in
e)tion $' o, P.D. No. '$%<:

e)tion $'. Conveance and other dealings !
registered owner. * An o/ner o, re"istered land !a+
)onve+, !ort"a"e, lease, )-ar"e or ot-er/ise deal /it-
t-e sa!e in a))ordan)e /it- e(istin" la/s. Ne !a+ use
su)- ,or!s o, deeds, !ort"a"es, leases or ot-er
voluntar+ instru!ents as are su,,i)ient in la/. But no
#ee#, !ort"a"e, lease, or ot-er voluntar+ instru!ent,
e()ept a /ill purportin" to )onve+ or a,,e)t re"istered
land sh"ll t"@e effect "s " con7e1"nce or bin# the
l"n#, #ut s-all operate onl+ as a )ontra)t #et/een t-e
parties and as eviden)e o, aut-orit+ to t-e Re"ister o,
Deeds to !a.e re"istration.

/he "ct of re0istr"tion sh"ll be the oper"ti7e
"ct to con7e1 or "ffect the l"n# insof"r "s thir#
persons "re concerne#, and in all )ases under t-is
De)ree, t-e re"istration s-all #e !ade in t-e o,,i)e o,
t-e Re"ister o, Deeds ,or t-e provin)e or )it+ /-ere t-e
land lies. 0e!p-ases ours1


=ro! t-e standpoint o, t-ird parties, a propert+ re"istered under
t-e :orrens s+ste! re!ains, ,or all le"al purposes, t-e propert+ o, t-e
person in /-ose na!e it is re"istered, not/it-standin" t-e e(e)ution o,
an+ deed o, )onve+an)e, unless t-e )orrespondin" deed is re"istered.
07$1
i!pl+ put, i, a sale is not re"istered, it is #indin" onl+ #et/een t-e
seller and t-e #u+er, #ut it does not a,,e)t inno)ent t-ird persons.

Dndou#tedl+, Heroni)a@s )lai! on t-e properties is rooted in
t-e unre"istered Deed o, A#solute ale #et/een Re"ina and -er
parents. :-e Bulaon"s do not appear to -ave -ad an+ .no/led"e t-at
t-is sale ever too. pla)e. :o re)all, Re"ina "ave t-e Bulaon"s t-e
o/ner@s dupli)ate )erti,i)ates o, t-e properties, /-i)- s-o/ed t-at t-e
properties /ere re"istered in t-e na!es o, -er parents, =ortunato and
Bert-a >i!po. It t-us appears t-at t-e Bulaon"s ,irst learned a#out t-e
sale #et/een Re"ina and -er parents /-en t-e+ re)eived t-e ne/l+
issued titles in Re"ina@s na!e /-i)- )ontained t-e annotation o, t-e
lev+ in Heroni)a@s ,avor.

One o, t-e prin)ipal ,eatures o, t-e :orrens s+ste! o,
re"istration is t-at all en)u!#ran)es on t-e land s-all #e s-o/n, or at
least inti!ated upon t-e )erti,i)ate o, title and a person dealin" /it-
t-e o/ner o, t-e re"istered land is not #ound to "o #e-ind t-e
)erti,i)ate and in8uire into transa)tions, t-e e(isten)e o, /-i)- is not
t-ere inti!ated.
07;1
Since the $ul"on0s h"# no @no6le#0e of the
unre0istere# s"le bet6een Re0in" "n# her p"rents& the $ul"on0s
c"n neither be boun# b1 it& nor c"n the1 be preAu#ice# b1 its
conse>uences( :-is is #ut t-e lo"i)al )orollar+ to t-e rule set ,ort- in
e)tion $' o, P.D. No. '$%<, in .eepin" /it- t-e #asi) le"al !a(i!
t-at /-at )annot #e done dire)tl+ )annot #e done indire)tl+.

!"ecution sale in Veronicas favor was highly irregular

Je also ,ind t-at t-e e(e)ution sale in ,avor o, Heroni)a is
invalid #e)ause Re"ina@s interest in #ot- lots /as sold to"et-er, in
violation o, e)tions '$ and %', Rule 5< o, t-e old Rules o, Court. :-e
pertinent portions o, t-ese provisions provide:

e)tion '$. 'xecution of mone judgments.
. :-e o,,i)er !ust en,or)e an e(e)ution o, a !one+
Cud"!ent #+ lev+in" on all t-e propert+, real and
personal o, ever+ na!e and nature /-atsoever, and
/-i)- !a+ #e disposed o, ,or value, o, t-e Cud"!ent
de#tor not e(e!pt ,ro! e(e)ution, or on a su,,i)ient
a!ount o, su)- propert+, i, t-ere #e su,,i)ient, and
sellin" t-e sa!e, and pa+in" to t-e Cud"!ent )reditor,
or -is attorne+, so !u)- o, t-e pro)eeds as /ill satis,+
t-e Cud"!ent. An+ e()ess in t-e pro)eeds over t-e
Cud"!ent and a))ruin" )osts !ust #e delivered to t-e
Cud"!ent de#tor, unless ot-er/ise dire)ted #+ t-e
Cud"!ent or order o, t-e )ourt. J-en t-ere is !ore
propert+ o, t-e Cud"!ent de#tor t-an is su,,i)ient to
satis,+ t-e Cud"!ent and a))ruin" )osts, /it-in t-e vie/
o, t-e o,,i)er, he must le71 onl1 on such p"rt of the
propert1 "s is "mpl1 sufficient to s"tisf1 the
Au#0ment "n# costs.
e)tion %'. /ow propert sold on execution.
0ho ma direct manner and order of sale. . All sales o,
propert+ under e(e)ution !ust #e !ade at pu#li)
au)tion, to t-e -i"-est #idder, #et/een t-e -ours o, nine
in t-e !ornin" and ,ive in t-e a,ternoon. After
sufficient property has been sold to satisfy the
e"ecution# no more shall be sold( J-en t-e sale is o,
real propert+, )onsistin" o, several .no/n lots, they
must be sold separatelyA or, /-en a portion o, su)- real
propert+ is )lai!ed #+ a t-ird person, -e !a+ re8uire it
to #e sold separatel+. 0e!p-ases ours1

J-ere t-e propert+ to #e sold )onsists o, distin)t lots, tra)ts or
par)els, or is sus)epti#le o, division /it-out inCur+, it s-ould #e o,,ered
,or sale in par)els and not en masse, ,or t-e reason t-at a sale in t-at
!anner /ill "enerall+ realiLe t-e #est pri)e, and /ill not result in
ta.in" ,ro! t-e de#tor an+ !ore propert+ t-an is ne)essar+ to satis,+
t-e Cud"!ent. It /ill also ena#le t-e de,endant to redee! an+ one or
!ore o, t-e par)els /it-out #ein" )o!pelled to redee! all t-e land
sold.
0791
A sale o, additional land or personal propert+ a,ter enou"- -as
#een sold to satis,+ t-e Cud"!ent is unaut-oriLed.
07?1

J-ile t-e "eneral poli)+ o, t-e la/ is to sustain e(e)ution
sales, t-e sale !a+ #e set aside /-ere t-ere is a resultin" inCur+ #ased
on ,raud, !ista.e and irre"ularit+.
07<1
J-ere t-e properties /ere sold
to"et-er /-en t-e sale o, less t-an t-e /-ole /ould -ave #een
su,,i)ient to satis,+ t-e Cud"!ent de#t, t-e sale !a+ #e set aside.
0$&1


In Caja v. 1an2uil,
0$'1
/e too. Cudi)ial noti)e o, t-e ,a)t t-at
t-e value o, a propert+ /as usuall+ #i""er t-an t-e a!ount ,or /-i)- it
)ould #e !ort"a"ed. in)e t-e t/o properties, ta.en to"et-er, /ere
!ort"a"ed to t-e petitioners to se)ure a loan /ort- P7,5&&,&&&.&&, /e
)an easil+ assu!e t-at t-ese properties are /ort- at least t-is a!ount.
Even Heroni)a does not )ontest t-is assu!ption.

=ro! t-is pre!ise, /e )an lo"i)all+ assu!e t-at t-e sale o,
Cust one o, t-e lots /ould -ave #een su,,i)ient to satis,+ t-e Cud"!ent
de#t. Iet no e(planation /as provided as to /-+ t-e s-eri,, sold #ot-
par)els o, land at t-e e(e)ution sale ,or t-e paltr+ su! o, P;7&,5$7.'7.
:-is a)t undou#tedl+ resulted in "reat preCudi)e to t-e Bulaon"s. :o
our !inds, t-is renders t-e e(e)ution sale de,e)tive, and provides
su,,i)ient "round ,or us to set t-e sale aside.

=or t-e ,ore"oin" reasons, /e rule and so -old t-at t-e lev+ and
t-e )orrespondin" e(e)ution sale in Heroni)a@s ,avor are invalid, and
!ust #e set aside. Heroni)a, -o/ever, is not /it-out re)ourse, as s-e
!a+ still see. to en,or)e t-e Cud"!ent de#t a"ainst Re"ina.


=;ERE.ORE, pre!ises )onsidered, /e %RAN/ t-e
petition and REVERSE t-e de)ision o, t-e Court o, Appeals
dated 4ul+ 5', %&&% in CA-6.R. P No. $$7%5. Je REINS/A/E t-e
de)ision o, t-e Re"ional :rial Court, Bran)- '%, Malolos, Bula)an,
dated 4ul+ 5&, '<<< in Civil Case No. '9&-M-<$, /it-
t-e MODI.ICA/ION t-at petitioners Ansel!o Bulaon" and Pris)illa
Bulaon" are no lon"er re8uired to rei!#urse Heroni)a 6onLales ,or -er
lien in t-e a!ount o, P%9$,&&&.&&, plus interest.

SO ORDERED(