SPS SALITICO vs.

HEIRS OF FELIX
GR No. 240199 | April 10, 2019

Facts: Amanda is the registered owner of a parcel of land.

By virtue of a document entitled Huling Habilin ni Amanda Burgos, the subject property was inherited by the niece of
Amanda, Resurreccion, as a devisee. The pertinent provision of the Huling Habilin provides:

Sa aking pamangkin nasi RESURRECCION MARTINEZ-FELIX, 'RESY', ay aking inaaboy ang apat (4) na parselang lupang
palayan na napapaloob sa mga titulong sumusunod:

Then, Resurreccion, as the new owner of the subject property, executed a document entitled Bilihang Tuluyan ng Lupa
which transferred ownership over the parcel of land in favor of Sps. Salitico. The Sps then took physical possession of
the property.
The Probate Court also approved the Huling Habilin.

However, Sps. Salitico received a demand letter requiring them to vacate the subject property and surrender
possession over it to the heirs of Felix.

Sps Salitico’s Prayer:

They filed a Specific Performance with Damages againts the Heirs of Resurreccion Martinez Felix. They also sought the
delivery and return in their favor of the owner's duplicate copy named under Amanda. They likewise prayed that OCT
P-1908 be cancelled and a new one be issued in their names. They assert that the sale was validly made to them.

Issue: Whether or not Resurreccion validly sold to Sps. Salitico all her rights in the [subject property] which she
inherited from Amanda as part of her undivided share in the estate of the deceased?
YES. She already had the right to her share of the estate. Hence, no legal bar for Resurrecion to enter into the
sale transaction with Sps Salitico.

Held:
No legal bar to an heir disposing of his/her hereditary share immediately after death of decedent.
Article 777 of the Civil Code, which is substantive law, states that the rights of the inheritance are transmitted from the
moment of the death of the decedent. Article 777 operates at the very moment of the decedent's death meaning
that the transmission by succession occurs at the precise moment of death and, therefore, at that precise time, the
heir is already legally deemed to have acquired ownership of his/her share in the inheritance, "and not at the time of
declaration of heirs, or partition, or distribution.”

In the case at bar:

Upon the death of Amanda, Resurreccion became the absolute owner of the devised subject property, subject to a
resolutory condition that upon settlement of Amanda's Estate, the devise is not declared inofficious or excessive.
Hence, there was no legal bar preventing Resurreccion from entering into a contract of sale with Sps. Salitico with
respect to Ressurecion’s share or interest over the subject property.

Therefore, considering that a valid sale has been entered, the heirs has no reason to withhold from Sps. Salitico the
owner's duplicate copy.

PD 1529 (Property Registration Decree) does not go against Article 777 of the Civil Code
Under Section 91 and 92 of PD 1529, it is only upon the issuance by the testate or intestate court of the final order of
distribution of the estate or the order in anticipation of the final distribution that the certificate of title covering the
subject property may be issued in the name of the distributees (Sps Salitico).

To clarify, this does not go against Article 777 of the Civil Code whatsoever. What the aforesaid Civil Code provision
signifies is that there is no legal bar preventing an heir from disposing his/her hereditary share and transferring such
share to another person. The rule, however, does not state that the transferee may already compel the issuance of a
new certificate of title covering the specific property in his/her name.

So in short, while an heir may dispose and transfer his/her hereditary share to another person, before the transferee
may compel the issuance of a new certificate of title covering specific property in his/her name, a final order of
distribution of the estate or the order in anticipation of the final distribution issued by the testate or intestate court
must first be had.

In the case at bar:

Despite the valid contract of sale between Resurreccion and Sps. Salitico,,pending the final settlement of the Estate
of Amanda, and absent any order of final distribution or an order in anticipation of a final distribution from the
Probate Court, the RD cannot be compelled at this time to cancel OCT and issue a new certificate of title in favor of
the Sps. Salitico.

THEREFORE:
The Heirs of Resurreccion Martinez Felix should just DELIVER the owner's duplicate copy of Title (named under
Amanda as previous owner) to Sps. Salitico. BUT a new certificate of title issued in their names (Sps Salitico as new
owner) is not yet allowed.