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a.

SPOUSES EXEQUIEL LOPEZ and During trial, Pedro Manansala, a witness for
EUSEBIA LOPEZ, Petitioners, respondents, testified that petitioners’ lot
vs. consisted of 168 sq m only, which they bought
SPOUSES EDUARDO LOPEZ and from him for ₱20,000.00 sometime after Martial
MARCELINA R. LOPEZ, Respondents. Law.4

G.R. No. 161925               November 25, 2009 Petitioner Eusebia Lopez refuted this by stating
that she bought a 273-sq-m lot from Pedro
Respondents, spouses Eduardo and Marcelina Manansala.5 She admitted that she filed a
Lopez, are the owners and occupants of an 80- protest against Villadares’ application for
square-meter residential lot situated in registration but claimed that Villadares later
Bulacan. agreed to sell the property to her for
₱30,000.00.6 Villadares corroborated her
They acquired the property by donation inter testimony, saying that when petitioners showed
vivos from Maria Alvarado and Agatona him proof that they owned a portion of the lot
Caparas, in whose names the lot was registered in his name, he agreed to transfer
previously declared for taxation purposes. the title of the said portion to their names. 7
Respondents have occupied the lot since
1977.2 I.

In November 1992, respondents discovered THE HONORABLE COURT OF APPEALS


that Victor Villadares was granted a free patent FAILED TO RECOGNIZE THE ACTUAL
over an 885-sq-m land, which included POSSESSION OF PETITIONERS AND THEIR
respondents’ lot, and was subsequently issued PREDECESSORS-IN-INTEREST ON (sic)
Original Certificate of Title (OCT) No. RP-253 THE PROPERTY NOW COVERED BY TCT
(P-8511) on March 8, 1978. NO. T-5066 OF THE REGISTRY OF DEEDS
FOR THE PROVINCE OF BULACAN FOR
Thereafter, Villadares subdivided the entire MORE THAN FIFTY (50) YEARS.
parcel of land into 3 lots, namely: Lot 9954-A,
Lot 9954-B and Lot 9954-C. IV.

As shown in the Deed of Absolute Sale of THE HONORABLE COURT OF APPEALS


Portions of a Parcel of Land, Villadares sold FAILED TO RECOGNIZE THAT THE DEED
Lot 9954-B with an area of 273 sq m to OF ABSOLUTE SALE OF PORTION OF
petitioners, spouses Eusebia and Exequiel PARCEL OF LAND EXECUTED BY
Lopez, and Lot 9954-C with an area of 337 DEFENDANT VICTOR VILLADARES IN
square meters to Filomena Caparas. FAVOR OF PETITIONERS, EXEQUIEL
LOPEZ AND EUSEBIA LOPEZ, WAS
Consequently, OCT No. RP-253 (P-8511) was MERELY TO SETTLE THEIR CONFLICT OF
cancelled and TCT Nos. T-5065, T-5066 and OWNERSHIP ON THE SUBJECT PROPERTY
T-5067 were issued to Villadares, to AND TO EXPEDITE THE TRANSFER
petitioners, and to Caparas, respectively. THEREOF TO THE PETITIONERS.

Respondents filed an action for reconveyance, V.


declaration of nullity of a deed of absolute sale,
cancellation of titles, and damages against THE HONORABLE COURT OF APPEALS
Villadares and petitioners. The action was filed ERRED IN AFFIRMING THE RULING OF THE
only against the two parties because LOWER COURT FOR THE CANCELLATION
respondents’ property is situated between their OF TCT NO. T-5065 WITH AN AREA OF 275
properties, Lots 9954-A and 9954-B. SQUARE METERS IN THE NAME OF
DEFENDANT VICTOR VILLADARES AND
THE CANCELLATION OF TCT NO. T-5066
WITH AN AREA OF 273 SQUARE METERS highly regarded as incontrovertible. What is
IN THE NAME OF PETITIONERS EXEQUIEL sought is the transfer of the property or its title,
LOPE[Z] AND EUSEBIA LOPEZ, WHEN THE which has been wrongfully or erroneously
CLAIM OF RESPONDENTS IS ONLY EIGHTY registered in another person’s name, to its
(80) SQUARE METERS.11 rightful owner or to one who has a better
right.15
The petition is partly meritorious.
The present action for reconveyance only
An action for reconveyance is a legal and entails the segregation of the portion wrongfully
equitable remedy granted to the rightful owner included in the certificate of title. The decree of
of a land which has been wrongfully or registration is to be respected, but the
erroneously registered in the name of another certificate of title will be cancelled for the
for the purpose of compelling the latter to purpose of amending it in order to exclude the
transfer or reconvey the land to him.12 portion wrongfully included therein. A new
certificate covering the portion reconveyed
The action does not seek to reopen the shall then be subsequently issued in the name
registration proceedings and to set aside the of the real owner.
decree of registration but only purports to show
that the person who secured the registration of However, the CA went beyond this and
the property in controversy is not the real declared the entire deed of sale, covering 273
owner thereof.13 sq m, void for being simulated. As such, the CA
decision would result not only in the
Initially, we affirm the CA’s findings of fact that amendment of petitioners’ certificate of title, but
respondents are the rightful owners of the in the absolute revocation of petitioners’ title
subject property, an 80-sq-m portion of land, itself. The property would then revert to its
wrongfully included in either or in both of the previous owner, subject to the right of
certificates of title of petitioners or Villadares, respondents over the portion of the lot which
and that petitioners were not innocent they claim as their own.
purchasers for value. As neighbors of
respondents, petitioners certainly would have Understandably, petitioners anxiously insist
known that respondents actually occupied the that their TCT should not be cancelled even if
subject property. Thus, Villadares, not being the deed of sale is declared void. They
the owner of the subject property, could not maintain that they own the entire Lot 9954-B,
have transferred ownership of the subject 80- not because they purchased the same from
sq-m portion of land to petitioners. Villadares, but because they previously
acquired the same from Pedro Manansala, in
As a logical consequence, petitioners did not whose name the lot was previously declared
become the owners of the subject property for taxation purposes. Petitioners allegedly
even after a TCT had been issued in their acquired the property from Pedro Manansala
names. After all, registration does not vest title. long before they bought the property from
Villadares, and they claim that they and their
Certificates of title merely confirm or record title predecessors-in-interest have been in
already existing and vested. They cannot be possession thereof for more than 50 years.
used to protect a usurper from the true owner, Hence, even if the deed of sale executed by
nor can they be used as a shield for the Villadares in their favor is nullified, they would
commission of fraud, or to permit one to enrich remain owners of the land and their title thereto
oneself at the expense of others. 14 Hence, should not be cancelled.16
reconveyance of the subject property is
warranted. However, petitioners are barred from raising
this issue as it constitutes a collateral attack on
It is well to remember that in an action for the decree of registration. The record shows
reconveyance, the decree of registration is that petitioners had participated in the land
registration proceeding by filing their opposition effect or in any way alter the juridical situation
to Villadares’ application for registration. of the parties. As a result, an absolutely
Petitioners’ alleged possession of the property simulated or fictitious contract is void, and the
prior to Villadares’ filing of the application for parties may recover from each other what they
registration was, in fact, the meat of their may have given under the contract. However, if
opposition in the land registration proceeding. the parties state a false cause in the contract to
And in a proceeding for land registration, conceal their real agreement, the contract is
whether with or without opposition, the final relatively simulated and the parties are still
judgment of the court confirming the title of the bound by their real agreement. Hence, where
applicant or oppositor, as the case may be, and the essential requisites of a contract are
ordering its registration in his name constitutes present and the simulation refers only to the
res judicata against the whole world.17 content or terms of the contract, the agreement
is absolutely binding and enforceable between
Thus, the Court is compelled to exercise its the parties and their successors in interest. 22l a
authority to review the validity of the Deed of wphil
Absolute Sale of Portions of a Parcel of Land,
though not specifically assigned as error in this Based on the foregoing, the subject deed of
petition, because its resolution is necessary to sale can hardly be considered simulated. There
arrive at a just decision and complete is no showing that the parties did not intend to
disposition of the case.18 be bound by the contract and to comply with its
terms. In fact, Villadares surrendered to
In finding that the contract of sale was petitioners any right he had over the property.
simulated, the CA held that petitioner’s He caused the titling of the property and the
opposition to Villadares’ application for transfer of the tax declaration in petitioners’
registration, together with Pedro Manansala’s names, and thereafter, delivered the certificate
testimony that petitioners actually bought the of title and the tax declaration to petitioners and
property from him, evinces the falsity of the accepted the purchase price from them. To
claim that petitioners purchased the property recall, Villadares admitted that he was swayed
from Villadares. by petitioners’ claim that they had a right over
the property and thus, he agreed to sell it to
We are not convinced. The primary them. Such motivation for entering into the
consideration in determining the true nature of contract would not negate the efficacy of the
a contract is the intention of the parties. Such contract. In the same way, petitioners’
intention is determined not only from the opposition in the land registration case does
express terms of their agreement, but also from not necessarily mean that petitioners did not
the contemporaneous and subsequent acts of really intend to purchase the property.
the parties.191avvphi1 Petitioners could have accepted or acquiesced
to Villadares’ title and entered into the
Simulation takes place when the parties do not agreement to finally settle their claim over the
really want the contract they have executed to property. The following testimony of petitioner
produce the legal effects expressed by its Eusebia Lopez is telling:
wordings.20 This Court’s pronouncement in
Valerio v. Refresca21 is instructive — Q Then after filing the protest, what did
you do?
Article 1345 of the Civil Code provides that the
simulation of a contract may either be absolute A I talked with Victor Villadares and we
or relative. In absolute simulation, there is a agreed that he will sell the land in a
colorable contract but it has no substance as much lower price, sir.
the parties have no intention to be bound by it.
The main characteristic of an absolute Q Did he comply with his promise?
simulation is that the apparent contract is not
really desired or intended to produce legal A Yes, sir.
Q So how much was it sold [to] you[;] as
you said it will be sold to you at a lower
price. How much was the selling price?

A ₱30,000.00, sir.

Q Did you pay the ₱30,000.00 to him?

A Yes, sir.

Q When did you pay it to defendant


Victor Villadares?

A When the title was given to me by him


as well as the tax declaration and the
Bilihang Patuluyan, sir.23

We, therefore, uphold the validity of the deed of


sale subject to the reconveyance of
respondents’ 80-sq-m portion of the land.

WHEREFORE, premises considered, the


petition is PARTIALLY GRANTED. The Court
of Appeals Decision dated January 26, 2004 is
AFFIRMED WITH MODIFICATIONS. The
Deed of Absolute Sale of Portions of a Parcel
of Land dated May 8, 1990 is declared VALID
but subject to our disposition hereunder.
Petitioners and Victor Villadares are directed to
cause a SURVEY of Lots 9954-A and 9954-B
in order to determine the exact location of the
80-sq m portion pertaining to respondents.
Thereafter, the Register of Deeds of Tabang,
Guiguinto, Bulacan is ordered to ISSUE the
corresponding transfer certificates of title in the
names of petitioners, respondents and Victor
Villadares, in accordance with said survey.

SO ORDERED.
Pablo City, in Civil Case No. SP-4489 (1996),
[Dinah] C. Castillo vs.
Raquel Buenaventura. The registered owner,
Summit Point Realty and Development Corporation
b. DINAH C. CASTILLO v. ANTONIO M. nor its predecessor-in-interest are not the judgment
ESCUTIN, GR No. 171056, 2009-03-13 debtor or a party in the said case. Simply stated,
there is no privity of contract between them
Facts: (Consulta No. 1044 and 1119). If ever, her adverse
Petitioner is a judgment creditor of a certain Raquel claim is against Raquel Buenaventura, the
K. Moratilla (Raquel), married to Roel judgment debtor who holds no title over the
Buenaventura. In the course of her search for property.
properties to satisfy the judgment in her favor, The LRA distinguished between two systems of
petitioner discovered that Raquel, her mother land... registration: one is the Torrens system for
Urbana Kalaw (Urbana), and sister Perla Kalaw. registered lands under the Property Registration
Moratilla (Perla), co-owned Lot 13713, a parcel of Decree, and the other is the system of registration
land consisting of 15,000 square meters, situated at for unregistered land under Act No. 3344 (now
Brgy. Bugtongnapulo, Lipa City, Batangas, and Section 113 of the Property Registration Decree).
covered by Tax Declaration No. 00449. These systems are separate and... distinct from
Petitioner set about verifying the ownership of Lot each other. For documents involving registered
13713. She was able to secure an Order dated 4 lands, the same should be recorded under the
March 1999 issued by Secretary Horacio R. Property Registration Decree. The registration,
Morales, Jr. of the Department of Agrarian Reform therefore, of an instrument under the wrong system
(DAR) approving the application of Summit Point produces no legal effect.
Golf & Country Club, Inc. for conversion of several Issues:
agricultural landholdings, including Lot 13713
owned by "Perla K. Mortilla, et al." and covered by THE HONORABLE COURT OF APPEALS
Tax Declaration No. 00449, to residential, PATENTLY ERRED IN AFFIRMING THE
commercial, and recreational uses. CANCELLATION OF THE TAX DECLARATION
00942 OF PETITIONER IN VIOLATION OF
Only thereafter did petitioner proceed to levy on SECTION 109 OF PRESIDENTIAL DECREE 1529,
execution Lot 13713, and the public auction sale of OTHERWISE KNOWN AS THE PROPERTY
the same was scheduled on 14 May 2002. REGISTRATION ACT
Sometime in May 2002, before the scheduled
public auction sale, petitioner learned that Lot Ruling:
13713 was inside the Summit Point Golf and
Title is generally defined as the lawful cause or
Country Club Subdivision owned by Summit Point
ground of possessing that which is ours. It is that
Realty and Development Corporation (Summit
which is the foundation of ownership of property,
Realty). She immediately went to the Makati City
real or... personal. Title, therefore, may be defined
office of Summit Realty to meet with its Vice
briefly as that which constitutes a just cause of
President, Orense. However, she claimed that
exclusive possession, or which is the foundation of
Orense did not show her any document to prove...
ownership of property.[41] Certificate of title, on the
ownership of Lot 13713 by Summit Realty, and
other hand, is a mere... evidence of ownership; it is
even threatened her that the owners of Summit
not the title to the land itself. Under the Torrens
Realty, the Leviste family, was too powerful and
system, a certificate of title may be an Original
influential for petitioner to tangle with.
Certificate of Title, which constitutes a true copy of
The records of the Registry reveals that the source the decree of registration; or a Transfer Certificate
of the rights or interest of the adverse claimant is by of Title,... issued subsequent to the original
virtue of a Levy on Execution by the Regional Trial registration.
Court Fourth Judicial Region, Branch 30, San
Petitioner's reliance on Section 109 of the Property
Registration Decree is totally misplaced. It provides
for the requirements for the issuance of a lost
duplicate certificate of title. It cannot, in any way, be
related to the cancellation of petitioner's tax
declaration.
As between Catigbac's title, covered by a certificate
of title, and petitioner's title, evidenced only by a tax
declaration, the former is evidently far superior and
is, in the absence of any other certificate of title to
the same property, conclusive and indefeasible as
to
Catigbac's ownership of Lot 1-B. Catigbac's
certificate of title is binding upon the whole world,
including respondent public officers and even
petitioner herself.
"[c]uriously, as to how and when petitioner's alleged
predecessor-in-interest, Raquel K. Moratilla and her
supposed co-owners acquired portions of Lot 1
described as Lot 13713 stated in TD
No. 00449, petitioner had so far remained utterly
silent."... t must be remembered that Summit Realty
had already... acquired a certificate of title, TCT No.
T-134609, in its name over Lot 1-B, which
constitutes conclusive and indefeasible evidence of
its ownership of the said property
Respondents were able to clearly describe their
official functions and to convincingly explain that
they had only acted in accordance therewith in their
dealings with petitioner and/or her documents.
Respondents' actions were only consistent with the
recognition... of the title of Catigbac over Lot 1-B,
transferred by sale to Summit Realty, registered
under the Torrens system, and accordingly
evidenced by certificates of title.
2.NO. The lower court did not commit any error
when it declared Titulo de Propriedad No. 4136 as
null and void, consequently excluding all lands
covered by the said title from the inventory of the
estate.
Under PD 892, the system of registration under
Spanish Mortgage Law was abolished and all
c. Intestate of San Pedro v CA (265 SCRA 733) holders of Spanish Titles should cause their lands
to be registered under Land Registration Act within
FACTS: 6 months from date of effectivity or until August 16,
1976.
1. GR 103727
In both cases, petitioner-heirs did not adduce
Engracio San Pedro, as heir-judicial administrator
evidence to show that Titulo de Propriedad No.
of Plaintiff Intestate, filed a complaint for recovery
4136 was brought under the operation of PD 892.
of real property/reconveyance with damages and
There was no certificate of title shown.
prayer for preliminary injunction against private
defendants Ocampo, Buhain and dela Cruz. Also, Titulo de Propriedad No. 4136, under PD 892,
is inadmissible and ineffective as evidence of
San Pedro alleged that defendants acquired portion
private ownership in special proceedings case.
of the subject estate by employing fraud, bad faith
Since the Titulo was not registered under Land
and misrepresentation.
Registration Act, said Titulo is inferior to the
registered title of defendants Ocampo, Buhain and
dela Cruz. Torrens title of the latter enjoys the
2. GR 106496 conclusive presumption of validity.
Engracio San Pedro and Justino Benito filed a RULING:
petition for letter of administration over the intestate
to be appointed as administrator and co- The Titulo de Propriedad is null and void and no
administrator. Judge Echeverri appointed San rights can be derived therefrom. All lands covered
Pedro as administrator and the court issued letter by said Titulo are excluded from inventory of the
of administration in his favor upon posting a bond of estate. The petition for letter of administration
10,000. closed and terminated. The heirs are disallowed to
exercise any act of possession or ownership and
Republic of the Philippines filed a motion for ordered to vacate.
intervention and opposition to the petition, claiming
that the Titulo de Propriedad is inadmissible and
ineffective proof of ownership in court and it is
invalid.
Republic filed a motion to suspend the proceedings
but the Republic‘s opposition to the petition for
letter of administration was dismissed. Republic
filed Motion for Recon.

ISSUES:
2. Whether or not the lower court committed error in
excluding from the inventory of the estate all lands
covered by Titulo de Propriedad No. 4136 on the
ground that it is null and void?
RATIO:
awaiting word from the LRA Administrator before
proceeding. Counsel for petitioner then requested
the LRA Administrator to... direct said Registers of
Deeds to comply with the Order.

The LRA Administrator,... sent counsel for


petitioner a letter-reply

d.FIDELA R. ANGELES v. SECRETARY OF We regret to inform you that your request cannot be
JUSTICE, GR No. 142549, 2010-03-09 granted in view of the directive of the Department
of Justice... as a result of the inquiry conducted by
Facts: the Composite Fact-Finding

The property involved in this case is covered by Committee (created under DOJ Department Order
Original Certificate of Title (OCT) No. 994, which No. 137) finding that there is only one OCT No.
encompasses One Thousand Three Hundred Forty- 994 which was issued by the Rizal Register of
Two (1,342) hectares of the Maysilo Estate... Deeds on 3 May 1917 (and not on 19 April 1919)
petitioner, together with other individuals, all of
them claiming to be the heirs of a certain Maria de The LRA Administrator likewise wrote that in
la Concepcion Vidal, and alleging that they are Senate Committee Report No. 1031 dated May 25,
entitled to inherit her proportional share in the 1998, the Senate Committees on Justice and Human
parcels of land located in Quezon City and in the... Rights and Urban Planning came up with the
municipalities of Caloocan and Malabon, Province following findings:... i. There is only one Original
of Rizal, commenced a special civil action for Certificate of Title (OCT) No. 994 and this was
partition and accounting of the property otherwise issued or registered on May 3, 1917... ii. The [OCT]
known as Maysilo Estate covered by OCT No. 994, No. 994 dated April 19, 1917 is non-existent. It was
allegedly registered on April 19, 1917 with the a fabrication perpetrated by Mr. Norberto Vasquez,
Registry ofDeeds of Caloocan City. Jr., former Deputy Registrar of Deeds of Caloocan
City.
Some of said alleged heirs were able to procure
Transfer Certificates of Title (TCTs) over portions iii. The alleged surviving heirs could not have been
of the Maysilo Estate. the true and legal heirs of the late Maria de la
Concepcion Vidal as government findings showed
They also had led this Court to believe that OCT the physical and genetic impossibility of such
No. 994 was registered twice relationship... iv. Mr. Norberto Vasquez, Jr., former
Deputy Registrar of Deeds of Caloocan City, acted
In the RTC Order sought to be implemented, Judge maliciously, fraudulently and in bad faith, by
Jaime D. Discaya granted the partition and issuing "certifications" and/or written statements to
accounting prayed for by plaintiffs in that case; the effect that OCT No. 994 was issued or
directed the respective Registers of Deeds of registered on April 19, 1917 when in... truth and in
Caloocan City and Quezon City to issue transfer fact it was issued or registered on May 3, 1917.
certificates of title... in the names of all the co-
owners, including petitioner, for twelve (12) parcels v. Atty. Yolanda O. Alfonso, Registrar of Deeds of
of land... and ordered that said parcels of land be Caloocan City, likewise acted maliciously,
sold, subject to the... confirmation of the Court, and fraudulently and in bad faith, when she signed the
the proceeds be divided among the plaintiffs in TCTs issued in the name of Eleuteria Rivera which
proportion to their respective interests in the bear a wrong date of the registration of OCT No.
property. 994.

Petitioner alleges that the respective Registers of Petitioner avers that respondent Guingona, in
Deeds of Caloocan City and Quezon City refused to issuing the 1st Indorsement,[13] made a substantive
comply with the RTC Order because they were still modification of the ruling made by this Court in
MWSS v. Court of Appeals and Heirs of Luis we find that it was not unlawful for public
Gonzaga v. Court of Appeals. respondents to refuse compliance with the RTC
Order, and the act being requested of them is not
She further avers that "[n]ot even the Secretary of their ministerial duty;... hence, mandamus does not
Justice has the power or authority to set aside or lie and the petition must be dismissed.
alter an established ruling made by the highest
Court of the land." It is settled that mandamus is employed to compel
the performance, when refused, of a ministerial
Petitioner contends that "[t]he rule is well settled duty, but not to compel the performance of a
that once a decision... becomes final[,] the Court discretionary duty.
can no longer amend, modify, much less set aside
the same" and that respondent Guingona usurped Mandamus will not issue to enforce a right which is
judicial functions and did a prohibited act which in substantial dispute or to which a substantial...
rendered the Order of no effect. doubt exists.

Petitioner claims that respondent Guingona was the Therefore, we must look into the alleged right of
one who caused the issuance by the LRA petitioner and see if compliance with the RTC
Administrator of Circular No. 97-11... which had Order is compellable by mandamus; or, in the
the same legal effect on other cases similarly alternative, find out if substantial doubt exists to
situated without hearing or notice to the parties-in- justify public respondents' refusal to comply with
interest, and that... this was contemptuous and said Order.
contumacious and calls for "condemnation and
reproof of the highest degree." Considering the probable duplication of titles over
the... same parcel of land, such issuance may
Respondent Guingona contends that he was no contravene the policy and the purpose, and thereby
longer the Secretary of Justice, therefore, he did not destroy the integrity, of the Torrens system of
anymore possess the mandatory duties being registration.
compelled to be performed in this case by way of a
writ of mandamus; he had no more duty resulting Likewise, the writ of mandamus can be awarded
from the said position and... could not perform an only when the petitioners' legal right to the
act that pertained to said duty, even if he wanted to; performance of the particular act which is sought to
and since he did not have the powers and duties of be compelled is clear and complete.
the Secretary of Justice, he was therefore not a real
party-in-interest in this case. Under Rule 65 of the Rules of Court, a clear legal
right is a right... which is indubitably granted by law
Petitioner argues that contrary to private or is inferable as a matter of law.
respondent's claim, she is entitled to file a petition
for mandamus as she and her co-plaintiffs in Civil As can be gleaned from the above discussion, the
Case No. C-424 has been suffering from damages issuance by the LRA officials of a decree of
and losses incapable of quantification, because of registration is not a purely ministerial duty in cases
the wrongful act of the... respondents. where they find that such would result to the double
titling of the same parcel of land.
Issues:
In the same vein, we find that in this... case, which
whether public respondents unlawfully neglected to involves the issuance of transfer certificates of title,
perform their duties by their refusal to issue the the Register of Deeds cannot be compelled by
questioned transfer certificates of title to petitioner mandamus to comply with the RTC Order since
and her co-plaintiffs (in Civil Case No. C-424) or there were existing transfer certificates of title
have... unlawfully excluded petitioner from the use covering the subject parcels of land and there was
and enjoyment of whatever claimed right reason to... question the rights of those requesting
for the issuance of the TCTs. Neither could
Ruling: respondent LRA Administrator be mandated by the
Court to require the Register of Deeds to comply the factual setting the same as or similar to that at
with said Order, for we find merit in the bar.
explanations of respondent LRA Administrator in
his... letter-reply in the 2009 Manotok case... affirmed the earlier
finding that "there is only... one OCT No. 994, the
There was, therefore, sufficient... basis for public registration date of which had already been
respondents to refuse to comply with the RTC decisively settled as 3 May 1917 and not 19 April
Order, given the finding, contained in the cited 1917" and categorically concluded that "OCT No.
documents, that OCT No. 994 dated April 19, 1917, 994 which reflects the date of 19 April 1917 as its
on which petitioner and her co-plaintiffs in the civil registration date is null and void."
case clearly anchored their rights, did not exist.
It appears... that the partition and accounting of a
As we held in the 2007 Manotok case: portion of the Maysilo Estate that she and her co-
plaintiffs prayed for can no longer prosper because
The determinative test to resolve whether the prior of the conclusive findings quoted... above that the
decision of this Court should be affirmed or set very basis of their claim, a second, albeit earlier
aside is whether or not the titles invoked by the registered, OCT No. 994, does not exist
respondents are valid. If these titles are sourced
from the so-called OCT No. 994 dated 17 April WHEREFORE, premises considered, the petition is
1917, then such... titles are void or otherwise should hereby DISMISSED.
not be recognized by this Court. Since the true basic
factual predicate concerning OCT No. 994 which is
that there is only one such OCT differs from that
expressed in the MWSS and Gonzaga decisions,
said rulings have become... virtually functus officio
except on the basis of the "law of the case" doctrine,
and can no longer be relied upon as precedents.

Specifically, petitioner cannot anymore insist that


OCT No. 994 allegedly issued on April 19, 1917
validly and actually exists, given the following
conclusions made by this Court in the 2007
Manotok case:

First, there is only one OCT No. 994. As it appears


on the record, that mother title was received for
transcription by the Register of Deeds on 3 May
1917, and that should be the date which should be
reckoned as the date of registration of the title.

Second. Any title that traces its source to OCT No.


994 dated [19] April 1917 is void, for such mother
title is inexistent.

Third. The decisions of this Court in MWSS v.


Court of Appeals and Gonzaga v. Court of Appeals
cannot apply to the cases at bar, especially in regard
to their recognition of an OCT No. 994 dated 19
April 1917, a title which we now acknowledge as...
inexistent. Neither could the conclusions in MWSS
or Gonzaga with respect to an OCT No. 994 dated
19 April 1917 bind any other case operating under
Register of Deeds of San Juan City for annotation
and registration of the mortgage.

Manalastas, as Examiner of said office, examined


the documents and assessed the corresponding fees.
After Cuasay paid for the fees, Manalastas entered
the mortgage in the Registration Book under Entry
No. 4435/T-1035 and affixed his initials on the Real
Estate Mortgage. Thereafter, Manalastas endorsed
e. OFFICE OF THE OMBUDSMAN the same document to Paras, as Acting Deputy
v. RICO C. MANALASTAS + Register of Deeds. After examination, Paras affixed
his initials on the Real Estate Mortgage then
[ GR No. 208264, Jul 27, 2016 ] endorsed it further to Dee, the Register of Deeds.
Finding the documents to have passed through the
The Facts natural course of registration, Dee also affixed her
signature on the Real Estate Mortgage, the Owner's
This case originated from a complaint for Grave Duplicate Copy of TCT No. 1035, and the Registry
Misconduct filed by Miriam Jane M. Jacinto Copy of TCT No. 1035, which served as collateral
(Jacinto), Assistant Vice President of BPI Family for the loan.
Savings Bank, Inc. (BPI Family), against Atty.
Lorna S. Dee (Dee), Manalastas, and Gilberto M. Thereafter, BPI Family released the net proceeds of
Paras (Paras), in their capacities as Register of the loan in the amount of P19,765,093.27 by
Deeds, Examiner, and Acting Deputy Register of crediting the Spouses Tiu's Joint Current
Deeds, respectively, of the Office of the Register of Account/Savings Account No. 6835-0036-96 which
Deeds of San Juan City, Metro Manila. was opened at BPI Family's Commonwealth branch.

In the Complaint, Jacinto alleged that sometime in On 1 February 2001, the real Paquito Tiu,
September 2000, Dy Chiu Ha Tiu or Marian Dy Tiu accompanied by his lawyer, Atty. Deogracias C.
(Marian) applied for a loan in the amount of Eufemio, went to BPI Family's main office located
P20,000,000 with BPI Family. Marian requested in Makati City. Paquito informed BPI Family's
that her husband's property located at 19 Lincoln officers that the signatures of one Paquito Tiu
St., West Greenhills, San Juan City be appraised for appearing on the loan documents were not his since
collateral purposes. The property was registered in he was not the same Paquito Tiu who signed them.
the name of Paquito Tiu (Paquito), Marian's Paquito presented his Owner's Duplicate Copy of
husband, and covered by Transfer Certificate of TCT No. 1035 and submitted a Sworn Statement
Title (TCT) No. 1035. BPI Family assessed the stating that he never signed the loan documents
property at P36,072,900. Thereafter, BPI Family applied for by Marian and that his signatures therein
approved the loan application of Marian secured by were forged.
the residential property.
BPI Family immediately made a verification with
On 25 January 2001, Marian and a certain person the Office of the Register of Deeds of San Juan
whom she introduced as her husband Paquito, City. Upon thorough examination, the Owner's
signed, executed, and delivered to BPI Family Duplicate Copy of TCT No. 1035 submitted by
several documents required for the loan. These Marian, although on its face appeared to be real and
documents were the Real Estate Mortgage, Loan authentic since the title was in a Land Registration
Agreement, Promissory Note, and Disclosure Authority form, turned out to be fake and spurious.
Statement, as well as the Owner's Duplicate Copy
of TCT No. 1035 in the name of Paquito. After such discovery, Dee, as Register of Deeds,
filed with the Office of the Prosecutor (Pasig City) a
On the same day, Reynold Cuasay, BPI Family's case against Marian for falsification of public
bank personnel, brought the Real Estate Mortgage documents.
and the other documents to the Office of the
Subsequently, BPI Family filed an administrative In the present case, Manalastas was found guilty of
complaint[4] for Grave Misconduct with the Office gross negligence for failing to discover the falsity of
of the Ombudsman against Dee, Manalastas, and the owner's duplicate copy of title attached to the
Paras. BPI Family asserted that due to their real estate mortgage submitted by BPI Family to the
negligence and dereliction of duties in failing to Office of the Register of Deeds. The Office of the
examine the genuineness and authenticity of TCT Ombudsman ruled that BPI Family had adequately
No. 1035, the bank was allegedly defrauded in the established Manalastas's negligence by substantial
amount of P16,460,671.63, exclusive of interest and evidence. The relevant portions of the
other charges. Ombudsman's Decision dated 12 September 2006
state:
In a Decision dated 12 September 2006, the Office
of the Ombudsman found Dee, Manalastas, and Considering that the Owner's Duplicate Copy of
Paras guilty of gross negligence and imposed on Title No. 1035 attached to the Real Estate Mortgage
them the penalty of one year suspension without being sought to be annotated, is in an authenticated
pay. form only, that fact should have put the respondents
on guard and therefore, each respondent should
have been more vigilant by exerting effort in
Since Paras retired from government service in comparing and verifying its authenticity by looking
October 2003, his penalty of suspension was into its minute details vis-a-vis the original copy on
rendered moot and academic. Dee and Manalastas file with them.
filed their separate motions for reconsideration
which were denied by the Office of the Ombudsman xxx [I]t is noted that, the BANK has no means of
in an undated Order.[7] knowing whether or not a title is genuine except
upon verification from the Office of the Registry of
Deeds as custodian of the original copies of the
transfer certificates of title. Lamentably, it is in this
Manalastas then filed an appeal[8] with the CA. In a wise that respondents were grossly negligent in the
Decision[9] dated 25 September 2012, the CA performance of their official functions when they
reversed the ruling of the Office of the Ombudsman. failed to distinguish the discrepancies between the
owner's duplicate copy of title being presented for
The Issue registration and the original copy of the title on file
with their office.[12]
The issue for our resolution is whether the CA erred
in exonerating Manalastas for negligence in failing
to determine the genuineness of the owner's However, the CA, in reversing the decision of the
duplicate copy of the title attached to the real estate Ombudsman, held that the primary reason why BPI
mortgage sought to be annotated with the Office of Family went to the Office of the Register of Deeds
the Register of Deeds of San Juan City. was to have the real estate mortgage registered and
annotated and not to verify the authenticity of the
The Court's Ruling owner's duplicate copy of title. Prior to such
registration, BPI Family already approved the loan.
The petition lacks merit. The relevant portions of the Decision dated 25
September 2012 state:
Petitioner contends that Manalastas fell short of his
duties and responsibilities as Examiner of the Office It must be noted that the main purpose of BPI when
of the Register of Deeds for failing to determine the it brought the Real Estate Mortgage together with
genuineness of the owner's duplicate copy of TCT the purported owner's duplicate copy of title to the
No. 1035 when referred to him for examination in Office of the Register of Deeds was to have the said
the annotation and registration of the real estate mortgage inscribed in the records of said office and
mortgage. annotated at the back of the certificate of title
covering the land subject of the instrument and not
to verify the authenticity of the owner's duplicate
copy of title. In fact, BPI verified the authenticity of
the forged title only after the real Paquito Tiu registered.[17]
showed up and informed its head office about the
forgery.[13] Here, the falsification of the owner's duplicate copy
of title was professionally done, that even someone
We agree with the CA. exercising reasonable prudence and care would not
instantly detect. On its face, the title was not
Section 10 of Presidential Decree No. 1529 [14] lays apparently discernible as fake or spurious and could
down the general functions of the Register of pass as a genuine and bona fide document. The title
Deeds: was in authentic form issued by the Land
Registration Authority and an exact reproduction of
Section 10. General functions of Registers of the original copy with the same serial numbers,
Deeds. - The office of the Register of Deeds impressions, texts, and signatures. When a
constitutes a public repository of records of document is in "authentic form," this means that at
instruments affecting registered or unregistered the time the document was inspected and verified,
lands and chattel mortgages in the province or city there was nothing extraordinary that would have
wherein such office is situated. placed even a reasonable person to suspect of any
wrongdoing.
It shall be the duty of the Register of Deeds to
immediately register an Instrument presented for As a public officer, Manalastas enjoys the
registration dealing with real or personal property presumption of regularity in the performance of his
which complies with all the requisites for official duties and functions.[18] Manalastas accepted
registration. He shall see to it that said instrument the requirements presented by BPI Family for
bears the proper documentary and science stamps annotation and registration of the real estate
and that the same are properly canceled. If the mortgage in the ordinary course of transaction. His
instrument is not registrable, he shall forthwith deny examination of the owner's duplicate copy of title
registration thereof and inform the presentor of such and his recommendation to his superiors for the
denial in writing, stating the ground or reason approval of the annotation and registration of the
therefor, and advising him of his right to appeal by real estate mortgage were made in good faith and
consulta in accordance with Section 117 of this not tainted with gross negligence.
Decree.
Gross negligence implies a want or absence of or
failure to exercise slight care or diligence, or the
Registration is a mere ministerial act by which a entire absence of care. It evinces a thoughtless
deed, contract, or instrument is sought to be disregard of consequences without exerting any
inscribed in the records of the Office of the Register effort to avoid them.[19] It is characterized by want
of Deeds and annotated at the back of the certificate of even slight care, acting or omitting to act in a
of title covering the land subject of the deed, situation where there is a duty to act, not
contract, or instrument. Being a ministerial act, it inadvertently but willfully and intentionally with a
must be performed in any case. The public officer conscious indifference to consequences insofar as
having this ministerial duty has no choice but to other persons may be affected.[20]
perform the specific action which is the particular
duty imposed by law. The purpose of registration is In administrative cases, the quantum of proof
to give notice to all persons. It operates as a notice needed to adjudge a respondent guilty is substantial
of the deed, contract, or instrument to others, but evidence. In Miro v. Mendoza,[21] we held that
neither adds to its validity nor converts an invalid substantial evidence is defined as such amount of
instrument into a valid one between the parties. [15] relevant evidence which a reasonable mind might
accept as adequate to support a conclusion.
Since registration of documents is a ministerial act
and merely creates a constructive notice of its It is more than a mere scintilla of evidence. The
contents against all third persons,[16] the Register of standard of substantial evidence is satisfied when
Deeds is not authorized to determine whether or not there is reasonable ground to believe, based on the
fraud was committed in the document sought to be evidence submitted, that the respondent is
responsible for the misconduct complained of. It normally conducted by banking and/or
need not be overwhelming or preponderant, as is financial/lending institutions, that is, i) by
required in an ordinary civil case, or evidence ascertaining that all the documents presented are
beyond reasonable doubt, as is required in a authentic and that the persons who introduce
criminal case, but the evidence must be enough for themselves as owners are indeed the owner[s] of the
a reasonable mind to support a conclusion. property, and borrowers, if not the registered owner,
are equipped with the legal document to transact
In this case, the owner's duplicate copy of title business and ii) by conducting actual character and
attached to the real estate mortgage was written in background investigation on Marian Dy Tiu as
an official paper of the Land Registration Authority applicant and of Paquito Tiu being the registered
and contained all the markings of a genuine title. owner of the property.[23]
The Office of the Register of Deeds is not mandated
to investigate further than necessary when Thus, as aptly held by the CA:
documents presented before it appear authentic. We
agree with the CA when it declared: It cannot be said that by reason of the failure of
petitioner to discover the forgery, BPI was
x x x [T]here is no basis to hold petitioner liable for defrauded in the amount of P4,850,000.00
gross negligence simply because he failed to considering that prior to registration of the
discover the forgery in the owner's duplicate copy mortgage, BPI already approved the loan applied
of title. It would be a grave injustice to punish him, for by Marian upon the latter's submission of the
when, in reality, he himself was a victim of the requisite documents with the presence of an
defraudation. impostor husband. In other words, as between the
failure of BPI to discover the forgeries in the
x x x x documents as well as the real identity of the
impostor husband on one hand, and the failure of
xxx [N]o liability could attach to petitioner in all petitioner to discover the forged owner's duplicate
registration procured through fraud, as in this case, [copy] of title on the other, the former should be
unless he is a party to such fraud. Indeed, were it considered as the proximate cause of BPI's loss. [24]
not for the appearance of the real Paquito Tiu, the
forgery would not have been discovered. This
bolsters petitioner's claim that he had acted in good As Justice Tuason opined, in his concurring and
faith in his dealings with the documents presented dissenting opinions in the case of him v. Register of
before him for registration.[22] Deeds of Rizal,[25] Registers of Deeds are not
guardians entrusted with watching over the private
interests of contracting parties who are fully capable
Also, BPI Family has the burden of proof to of looking after their own affairs. Thus, BPI Family
overcome the presumption of regularity in the has to bear the burden of loss.
performance of official duty. BPI Family would
want to pass the blame to Manalastas by imputing In sum, in the absence of any substantial evidence
gross negligence on his part when it is BPI Family that Manalastas did not properly perform his duty as
which is the proximate cause of the loss. Examiner or that he intentionally performed an
illegal act, then the presumption of regularity in the
As mentioned by the Office of the Ombudsman in performance of duty should prevail. We do not find
its Decision dated 12 September 2006, BPI Family Manalastas administratively liable for gross
had been remiss in approving the loan without first negligence in carrying out his official functions
making a thorough investigation of the true identity which he had executed within reasonable bounds of
of its clients and the genuineness of the documents diligence and care.
submitted to it. The relevant portions of the
Decision state:

x x x [T]he BANK may have been negligent to


protect its interests when it approved the loan
without first making the necessary investigation
ISSUE:
W/N the refusal of the Register of Deeds to make
the annotation is proper
HELD:
YES. There being several copies of the same title
in existence, their integrity may be affected if an
encumbrance, or an outright conveyance, is
annotated on one copy and not on the others. If
different copies were permitted to carry different
annotations, the whole system of Torrens
registration would cease to be available.
Since the property subject of donation is also
presumed conjugal, that is, property of donor
Cornelio and his deceased wife Nemesia Mina,
f. BALBIN V. REGISTER OF DEEDS
“there should first be a liquidation of the partnership
11 Feb before the surviving spouse may make such a
conveyance.” Assuming the conjugal nature of the
L – 20611 | May 8, 1969 | J. Makalintal property, the donation bears on its face an
Where several co-owner’s duplicate of certificates infirmity which justified the denial of registration,
of titles are issued, a voluntary instrument cannot namely, the fact that 2/3 portion of the property
be registered without surrendering all the copies to which Cornelio donated was more than ½ his
the Register of Deeds so that every copy of thereof share, not to say more than what remained of such
would contain identical entries of the transactions share after he had sold portions of the same land to
affecting the land covered. 3 other parties.

FACTS:
Petitioners Aurelio and Francis Balbin presented to
the Ilocos Sur register of deeds a duplicate copy of
the registered owner’s certificate of title and a deed
of donation inter-vivos, requesting that the latter be
annotated on the title. The registered owner
Cornelio Balbin appears to have donated inter-
vivos 2/3 portion of the land. The register of deeds
denied the requested annotation for being “legally
defective or otherwise not sufficient in law.” It
appears that previously annotated in the
memorandum of encumbrances on the OCT are
three separate sales earlier executed by Cornelio
Balbin in favor of Florentino Gabayan, Roberto
Bravo and Juana Gabayan, who each received
their co-owner’s duplicate CTs. Mainly because
these 3 co-owner’s copies of CTs had not been
presented by petitioners, the register of deeds
refused to make the requested annotation.
Petitioners referred the matter to the Commissioner
of Land Registration, who upheld the action of the
Register of Deeds in a resolution.
brokered the sale of the subject property, allegedly a
cousin or relative of hers;” In her defense, Banguis
denied specifically that the subject property was
acquired by Adriano and Wenifreda during their
marriage. She claimed that on the other hand, she alone
bought the subject property using her personal funds;
that she and Adriano were married on September 2,
1988 and thereafter lived together as a married couple;
that their union produced a son, who was born on April
1, 1990; that the trial court has no jurisdiction over the
petition for cancellation, which is merely a summary
proceeding – considering that a thorough determination
will have to be made as to whether the property is
conjugal or exclusive property, and since she and
Adriano have a child whose rights will be adversely
affected by any judgment in the case. The RTC decided
in favor of Wenifreda and directed the RD of
Meycauyan to cancel the TCT of Banguis, and in lieu
thereof to issue a new certificate of title in the name of
g. ROSARIO BANGUIS-TAMBUYAT,
Adriano Tambuyat married to Winifreda Tambuyat.
Petitioner, v. WENIFREDA BALCOM-
TAMBUYAT, Respondent. G.R. No. RTC justified its decision by using Section 108 of
Presidential Decree No. 1529 (PD 1529) or the Property
202805, March 23, 2015 Registration Decree – court authorization is required for
FACTS: Adriano M. Tambuyat and respondent any alteration or amendment of a certificate of title
Wenifreda Balcom-Tambuyat were married on when any error, omission or mistake was made in
September 16, 1965. During their marriage, Adriano entering a certificate or any memorandum thereon, or
acquired several real properties, including a 700-square on any duplicate certificate, or when there is reasonable
meter parcel of land located at Barangay Muzon, San ground for the amendment or alteration of the title. The
Jose del Monte, Bulacan (the subject property),7 which CA sustained the trial court’s decision noting that
was bought on November 17, 1991. The deed of sale Banguis name was included in the TCT be error or
over the said property was signed by Adriano alone as mistake. It held that the evidence adduced that
vendee; one of the signing witnesses to the deed of sale Winifreda not Banguis is the lawful wife of Adriano; that
was petitioner Rosario Banguis-Tambuyat , who signed there was a valid and subsisting marriage of between
therein as “Rosario Banguis.” 9 When (TCT T145321) Nolasco and Banguis; and the latter admitted to such
covering the subject property was issued, however, it fact during the course of the proceedings in the trial
was made under the name of “ADRIANO M. TAMBUYAT court; and that Banguis’s opposition to Wenifreda’s
married to ROSARIO E. BANGUIS.” On June 7, 1998, petition for cancellation of TCT T-145321 is not real and
Adriano died intestate. genuine as to place the latter’s title to the subject
property in doubt.
Subsequently, Wenifreda filed a Petition for
Cancellation of TCT T-145321. She alleged therein that
ISSUE: Whether the cancellation of the TCT by
she was the surviving spouse of Adriano; and that the
Winifreda be granted by the court.
TCT was erroneously registered and made in the name
of “ADRIANO M. TAMBUYAT married to ROSARIO E. HELD: Yes. Under Section 108 of PD 1529, the
BANGUIS;” that per annexed Marriage Contract, proceeding for the erasure, alteration, or amendment
Banguis was still married to Nolasco; that Banguis could of a certificate of title may be resorted to in seven
not have been married to Adriano; that the issuance of instances: (1) when registered interests of any
the title in Banguis’s name as Adriano’s spouse was due description, whether vested, contingent, expectant, or
to “an insidious machination by her and the person who inchoate, have terminated and ceased; (2) when new
interests have arisen or been created which do not respondents - instead of registering the supposed
appear upon the certificate; (3) when any error, sale in their favor - executed an Affidavit of Non-
omission or mistake was made in entering a certificate Loss
or any memorandum thereon or on any duplicate
certificate; (4) when the name of any person on the Petitioner confronted respondents, who showed her
certificate has been changed; (5) when the registered a notarized Agreement[9] with right of repurchase...
owner has been married, or, registered as married, the and an unnotarized and undated Deed of Absolute
marriage has been terminated and no right or interest Sale,[10] on which documents petitioner's purported
of heirs or creditors will thereby be affected; (6) when a signatures... were affixed.
corporation, which owned registered land and has been
These documents indicate that petitioner sold the
dissolved, has not conveyed the same within three
property... to respondents for P250,000.00 with
years after its dissolution; and (7) when there is
right to repurchase the same within a period of 90
reasonable ground for the amendment or alteration of
days.
title.

The present case falls under (3) and (7), where the Petitioner told respondents that she did not execute
Registrar of Deeds of Bulacan committed an error in these documents, and that her purported...
issuing TCT T-145321 in the name of “Adriano M. signatures therein were in fact falsified and forged.
Tambuyat married to Rosario E. Banguis” when, in truth
and in fact, respondent Wenifreda – and not Banguis – She demanded the return of TCT... but respondents
refused to surrender the title to her. They claimed
is Adriano’s lawful spouse.
that the property was sold to them by Perez and "a
companion."
h. RUBY RUTH S. SERRANO MAHILUM v.
SPS. EDILBERTO ILANO AND LOURDES
All this time, title to the property remained in
ILANO, GR No. 197923, 2015-06-22
petitioner's name, as respondents have not
registered the unnotarized and undated Deed of
Facts:
Absolute Sale.
Petitioner Ruby Ruth S. Serrano Mahilum is the
petitioner and her husband Richard instituted
registered owner of a parcel of land... she entrusted
against respondents and Perez... with the Regional
the original owner's duplicate copy of TCT... to
Trial Court... a
Teresa Perez (Perez) - a purported real estate broker
- who claimed that she can assist petitioner in
Complaint[11] for "annulment of agreement and
obtaining a loan, with TCT... serving as collateral.
deed of absolute sale, specific... performance, with
damages,"

Respondents' Amended Answer with Compulsory


After several months, petitioner... demanded the
Counterclaim[13] alleged and admitted, among
return of the title, but Perez failed to produce the
others, that petitioner was the owner of the lot
same; after much prodding, Perez admitted that the
title was lost.
Perez - accompanied by one Corazon Tingson
(Tingson) "and a female person who introduced
petitioner executed an Affidavit of Loss and caused
herself as Ruby Ruth Serrano" - offered to sell to
the same to be annotated upon the original registry
them the property... that "in support of the identity
copy of TCT... petitioner received a letter from the
of the said Ruby
Registry of Deeds of Las Pinas City informing her
that the owner's duplicate copy of TCT... was not
Ruth Serrano, the original owner's copies of the title
lost, but that it was presented to the registry by
respondents, spouses Edilberto and Lourdes Ilano,
, Declaration of Real Property, Tax Clearance,
who claimed that the... property covered by the title
Barangay Clearance, Community Tax Certificate
was sold to them.
with picture of Ruby Ruth Serrano attached therein" petitioners[24] were in bad faith or at least aware of
were presented to respondent the misrepresentation... of the vendor of the subject
property at the time they purchased the same
"the person who introduced herself as Ruby Ruth
Serrano" obtained a cash advance of P50,000.00; Petitioner filed her Motion for Reconsideration,[30]
that after verification confirmed that the property is which the CA denied
indeed owned by and registered in the name of
Ruby Ruth Serrano, Edilberto - "believing in good Issues:
faith that the person [with]... whom he is dealing x x
x is indeed the real Ruby Ruth Serrano" - entered NO... the CA was correct in declaring that
into the sale transaction... on the same day,... petitioner's complaint... failed to state a cause of
petitioner received the full consideration of action owing to her failure to allege that the
P250,000.00 and signed the Agreement and Deed of property in question was... purchased in bad faith.
Absolute Sale... that... the complaint failed to allege
that respondents were purchasers in bad faith or at Ruling:
least with notice of the defect in the title, which
leads to the conclusion that the complaint states no NO NEW TITLE
cause of action
In granting demurrer, the CA failed to consider that
Respondents thus prayed for the dismissal of the title to the property remained in petitioner's name...
complaint, and by way of counterclaim, sought no new title was issued in respondents' name. As a
indemnity for... damages matter of fact, what they did when petitioner
annotated her affidavit of loss... was to cause the
Pre-trial and presentation of petitioner's evidence annotation of an "affidavit of non-loss" afterward.
ensued. Thereafter, petitioner rested her case.
Since a new title was never issued in respondents'
Respondents filed a Demurrer to Evidence,[14] favor and, instead, title remained in petitioner's
arguing that the complaint failed to state a cause of name, the former never came within the coverage
action in that petitioner failed to allege that and protection of the Torrens system, where the
respondents were purchasers in bad faith or with issue of good or bad faith becomes relevant.
notice of a defect in the title
The jurisprudential bases for the CA's
Petitioner filed a Comment/ Opposition,[15] pronouncement that there is a failure to state a cause
contending essentially that her complaint contained of action if there is no allegation in the complaint
an allegation that respondents were purchasers in that respondents were purchasers in bad faith...
bad faith involved complaints for annulment of new titles
issued to the buyers; they cannot apply to
RTC... the trial court denied respondents' demurrer. petitioner's case where title remains in her... name.

Respondents filed a Motion for Reconsideration, Petitioner's case is to annul the agreement and deed
[18] but the trial court denied the same of sale based on the allegation that they are
forgeries, and that respondents were parties to the
Respondents went up to the Court of Appeals (CA) fraud; since no new title was issued in respondents'
via an original Petition for Certiorari. favor, there is no new title to annul. Indeed, if the
agreement and deed of... sale are forgeries, then
CA they are a nullity and convey no title.

The CA held that - FAILURE TO REG SALE

A careful reading of private respondents'[23] A cursory examination of the record will show that
complaint before public respondent would show petitioner's action does not appear to be groundless.
that private respondents indeed failed to allege that
Their failure to register the unnotarized and undated
deed of... absolute sale is at the very least unusual; it
is contrary to experience. It is uncharacteristic of a
conscientious buyer of real estate not to cause the
immediate registration of his deed of sale as well as
the issuance of a new certificate of title in his name.

We cannot ascribe good faith to those who have not


shown any diligence in protecting their rights.

NEG PREGNANT

Even at the level of the CA, respondents admitted,


in their petition for certiorari, that they bought the
property not from petitioner, but from their "co-
defendants who had a defective title" - presumably
Perez and the impostor.

The above allegations in respondents' pleadings are


certainly revealing. They already knew petitioner's
identity and how she looked, having met her even
before the filing of the complaint - when petitioner
confronted them and they showed her the agreement
and deed of sale. Thus,... they should not have
referred to the supposed seller as "another person
herein named as 'Jane Doe' whose identity is yet to
be established who introduced herself as Ruby Ruth
Serrano" or "the person who introduced herself as
Ruby Ruth Serrano" if indeed it was... petitioner
herself who appeared and signed the agreement and
deed of sale in question. They should have
categorically alleged that they bought the property
from petitioner herself if indeed this was so. Their
ambiguous allegations constitute a negative
pregnant, which is in... effect an admission.

negative pregnant, that is, a denial pregnant with the


admission of the substantial facts in the pleading
responded to which are not squarely denied.

It is a denial pregnant with an admission of the...


substantial facts alleged in the pleading.

Finally, petitioner's complaint... clearly states that in


the execution of the agreement and deed of absolute
sale, respondents and Perez acted in bad faith and
connived in the forgery.
able to secure a title in his name does not operate to
vest ownership upon him of the subject land.

Registration of a piece of land under the Torrens


System does not create or vest title, because it is not
a mode of acquiring ownership. A certificate of title
is merely an evidence of ownership or title over the
particular property described therein. It cannot
bused to protect a usurper from the true owner; nor
can it be used as a shield for the commission of
fraud; neither does it permit one to enrich himself at
the expense of others. Its issuance in favor of a
particular person does not foreclose the possibility
that the real property may be co-owned with
persons not named in the certificate, or that it may
be held in trust for another person by the registered
owner.11

One of the distinguishing marks of the Torrens


system is the absolute certainty of the identity of a
registered land. Consequently, the primary purpose
of the requirement that the land must first be
surveyed is to fix the exact or definite identity of the
land as shown in the plan and technical
i. SPOUSES YU HWA PING AND MARY description.12 It is imperative in an application for
GAW, Petitioners vs. AYALA LAND, INC., original registration that the applicant submit to the
Respondent court, aside from the original or duplicate copies of
the muniments of title, a copy of a duly approved
G.R. No. 173120 survey plan of the land sought to be registered. The
survey plan is indispensable as it provides a
The titles of ALI are void due reference on the exact identity of the property.13
to the erroneous technical
descriptions sourced from A survey plan precisely serves to establish the true
void ab initio surveys identity of the land to ensure that it does not overlap
a parcel of land or a portion thereof already covered
ALI essentially argues that the transfer certificate of by a previous land registration, and to forestall the
titles (TCTs) registered under its name cannot be possibility that it will be overlapped by a
declared void simply because the survey conducted subsequent registration of any adjoining land.14
on the subject land was not valid. It emphasizes that Thus, if the survey plan is evidently erroneous, then
the survey of the subject land is not part and parcel the exact and finite identity of the land cannot be
of the TCTs, thus, it is immaterial whether the reflected in the technical description of the
survey suffered from any defect. certificate of title.

The argument fails. In Veterans Federation of the Philippines v. Court


of Appeals,15 the Court ruled that "it is well-
Although a certificate of title serves as evidence of established that errors in the certificate of title that
an indefeasible and incontrovertible title to the relate to the technical description and location
property in favor of the person whose name appears cannot just be disregarded as mere clerical
therein,10 it is not a conclusive proof of ownership. aberrations that are harmless in character, but must
It is a well-settled rule that ownership is different be treated seriously so as not to jeopardize the
from a certificate of title. The fact that a person was integrity and efficacy of the Torrens system of
registration of real rights to property. Thus, when
the technical description appearing in the title is dissect the survey upon which it was sourced. As a
clearly erroneous, the courts have no other result, it was discovered that the registered titles
recourse but to order its cancellation and cause therein contained areas which belong to the sea and
the issuance of a new one that would conform to the foreshore lands.
mutual agreement of the buyer and seller as laid
down in the deed of sale." In this case, the TCTs of petitioners originated from
Original Transfer Certificate (OCT) No. 8510,
It was further discussed therein that the simple which was based on survey plan Psu-25909 dated
possession of a certificate of title is not necessarily March 17, 1921. On the other hand, the TCTs of
conclusive of the holder's true ownership of all the ALI originated from OCT No. 242, 244 and 1609,
property described therein for said holder does not which were based on survey plans Psu-47035 dated
by virtue of said certificate of title alone become October 21, 1925, Psu-80886 dated July 28, 1930,
the owner of what has been either illegally or and Psu-80886/SWO-20609 dated March 6, 1931.
erroneously included. It has been held by this
Court that "if a person or entity obtains a title which As will be thoroughly discussed later, survey plans
includes by mistake or oversight land which cannot Psu-47035, Psu-80886, Psu-80886/SWO-20609
be registered under the Torrens system or over contain numerous and glaring irregularities.
which the buyer has no legal right, said buyer does Consequently, as the surveys were marred with
not, by virtue of said certificate alone, become the blatant anomalies, the technical descriptions
owner of the land illegally or erroneously included. contained in OCT No. 242, 244 and 1609 are also
In fact, when an area is erroneously included in a void and erroneous. Verily, these technical
relocation survey and in the title subsequently descriptions in the said certificate of titles do not
issued, the said erroneous inclusion is null and void refer to a valid and exact portion of the lands. In
and of no effect. And on the rare occasion where fact, as noted by the trial court, the lands therein
there is such an error, the courts may decree that the were described to be located in different places.
certificate of title be cancelled and a correct one Further, the land surveyed in Psu-47035, Psu-
issued to the buyer."16 80886, Psu-80886/SWO-20609 patently overlaps
with the land surveyed in Psu-25909, even though
Consequently, the invalidity of the survey affects the latter was issued in an earlier date. Once a land
the technical description of the land, which is found has been surveyed, it is highly irregular to conduct a
on the title. Glaring and substantial errors in the second survey to overlap with the same parcel of
technical description should not be simply land. Indeed, when the survey of the land is null and
disregarded as trivial or formal errors because these void, the technical description of the land is also
precisely affect the identity of the land. Regrettably, null and void. As a result, the validity of OCT No.
never addressed are the numerous and manifest 242, 244 and 1609 cannot be upheld.
mistakes in the identity of the purported lands
covered by the titles of ALI that will be discussed There were numerous
below. irregularities in the survey of
the land
In Dizon v. Rodriguez17 and Republic v. Ayala y
Cia,18 the Court confronted the validity of the  
surveys conducted on the lands to determine
whether the title was properly subdivided. It was As threshed out in the decision of the Court, the
ruled therein that "subdivision plan Psd-27941 was surveys in OCT No. 242, 244 and 1609 contain
erroneous because it was "prepared not in numerous irregularities that strikes out the validity
accordance with the technical descriptions in TCT of these titles. The said irregularities are as follows:
No. T-722 but in disregard of it, supports the
conclusion reached by both the lower court and the First, Psu-25909 was conducted by a certain A.N.
Court of Appeals that Lots 49 and 1 are actually Feliciano in favor of Andres Diaz and was approved
part of the territorial waters and belong to the on May 26, 1921. Curiously, the subsequent surveys
State."19 Accordingly, the sole method for the of Psu-47035 for a certain Dominador Mayuga,
Court to determine the validity of the title was to Psu-80886 for a certain Guico and
Psu-80886/SWO-20609 for a certain Yaptinchay, In University of the Philippines v. Rosario,20 it was
were also conducted by A.N. Feliciano. It is dubious held that "[n]o plan or survey may be admitted in
how the same surveyor or agrimensor conducted land registration proceedings until approved by the
Psu-47035, Psu-80886 and Psu-80886/SWO-20609 Director of Lands. The submission of the plan is a
even though an earlier survey on Psu-25909, which statutory requirement of mandatory character.
the surveyor should obviously be aware, was Unless a plan and its technical description are duly
already conducted on the same parcel of land. Engr. approved by the Director of Lands, the same are of
Pada, witness of the Spouses Yu, also observed this no value." Hence, the lack of approval by the
irregularity and stated that this practice is not the Director of Lands of Psu-80886 casts doubt on its
standard norm in conducting surveys. legality. It also affects the jurisdictional facts before
the land registration courts which relied on Psu-
Second, even though a single entity conducted the 80886 for registration.
surveys, the lands therein were described to be
located in different places. Psu-25909, the earliest In Del Rosario v. Republic,21 the Court emphasized
dated survey, indicated its location at Sitio Kay that the submission in evidence of the original
Monica, Barrio Pugad Lawin, Las Piñas, Rizal, tracing cloth plan, duly approved by the Bureau
while Psu-47035 and Psu-80886 stated their of Lands, in cases for application of original
locations at Sitio May Kokek, Barrio Almanza, Las registration of land is a mandatory requirement. The
Piñas, Rizal, and Barrio Tindig na Mangga, Las reason for this rule is to establish the true identity of
Piñas, Rizal, respectively. Again, Engr. Pada the land to ensure that it does not overlap a parcel of
observed this peculiarity and pointed out that the land or a portion thereof already covered by a
subject properties should have had the same previous land registration, and to forestall the
address. ALI did not provide an explanation to the possibility that it will be overlapped by a
discrepancies in the stated addresses. Thus, it led subsequent registration of any adjoining land.
the CA to believe that the same surveyor indicated
different locations to prevent the discovery of the Fifth, Psu-80886 was issued on July 28, 1930 but it
questionable surveys over the same parcel of land. referred to a specific monument described as
B.L.L.M No. 4. According to the LMB-DENR, the
Third, there is a discrepancy as to who requested said monument was only established on November
the survey of Psu-47035. The photocopy of Psu- 27, 1937, more than seven years after Psu-80886
47035, as submitted by ALI, shows that it was done was issued.22 This discrepancy was duly noted in
for a certain Estanislao Mayuga. On the other hand, the findings of the verification report and it was
the certified true copy of Psu-47035 depicts that it affirmed by the testimony of Engr. Pada. Thus, both
was made for Dominador Mayuga. Once more, the RTC of Las Piñas and the CA in its February 8,
Engr. Pada noticed this discrepancy on the said 2005 decision properly observed that it was highly
survey. ALI, however, did not give any justification irregular for Psu-80886 to refer to B.L.L.M No. 4
on the diverging detail, which raises question as to because the said monument existed seven years
the authenticity and genuineness of Psu-47035. later.

Fourth, Psu-80886 does not contain the signature The metes and bounds in the technical description
of then Director of Lands, Serafin P. Hidalgo; of the title are of utmost importance. It is well
rather, the prefix "Sgd." was simply indicated settled that what defines a piece of titled property is
therein. As properly observed by the CA in its not the numerical data indicated as the area of the
February 8, 2005 decision, any person can place the land, but the boundaries or "metes and bounds" of
said prefix and it does not show that the Director of the property specified in its technical description as
Lands actually signed and gave his imprimatur to enclosing it and showing its limits.23 Thus, if there
Psu-80886. The absence of the approval of the is an erroneous designation of the metes and bounds
Director of Lands on Psu-80886 added doubt to its as indicated in the survey due to a non-existent
legitimacy. The excuse proffered by ALI - that Psu- monument, then such inaccurate data shall also be
80886 is regular and valid simply because land reflected in the technical description of the
registration proceedings were undertaken - is certificate of title.
insufficient to cure the crucial defect in the survey.
Sixth, ALI attempted to explain this anomaly by measurement."26 Manifestly, no explanation was
stating that Psu-80886 was amended by Psu- provided why it was necessary to make erasures of
80886/SWO-20609, a Special Work Order, in view the crucial data in the survey regarding the total
of the discrepancies of the former. While Psu- area.
80886/SWO-20609 is dated March 6, 1931, ALI
insists that it was actually conducted in 1937 and Ninth, the RTC of Las Piñas continued its
approved in 1940. However, in its February 8, 2005 observations regarding Psu-80886's anomalies. It
decision, the CA noted that said testimony crumbled added that "[a]n examination of the same reveals
under cross-examination as ALI's witness, Engr. that the lower right hand corner of the plan, which
Felino Cortez (Cortez), could not reaffirm the said bears the serial number Psu-80886, is manifestly
justification for Psu-80886's manifest error of different from the main document in terms of the
including a latter dated monument. Also, the Court intensity of its contrast, and that the change in the
observed that ALI's other witness, Engr. Percival intensity of the shading is abrupt as one examines
Bacani, testified that he does not know why the document starting from the lower right-hand
B.L.L.M No. 4 was used in preparing Psu-80886 corner to anywhere else in the same document.
even though the said monument appears on all the Also, it is worth observing that the main document,
titles.24 Moreover, the alleged explanation provided minus the lower right hand corner mentioned, does
by ALI to justify the existence of B.L.L.M No. 4 in not indicate anything to even suggest that it pertains
Psu-80886 was not indicated at all in the to plan Psu-80886. For these reasons, the contention
verification report and survey plan they submitted of the plaintiffs that this lower right-hand corner of
before the RTC of Las Piñas. Accordingly, ALI did the plan appears to be a spurious attachment to the
not resolve the uncertainty surrounding the main document, to make the main document look
reference to B.L.L.M No. 4 by Psu-80886 and it like it is actually plan Psu-80886, has merit."27
seriously damages the validity of the said survey. These observations were based on the first-hand
examination of the surveys, verification reports, and
Seventh, ALI explained that Psu-80886/SWO- witnesses by the RTC of Las Piñas.
20609 was undertaken to correct a discrepancy in
Psu-80886. Its witness, Engr. Cortez, confirmed that Tenth, as correctly emphasized by the CA in its
Psu-80886/SWO-20609 was commenced to resolve February 8, 2005 decision, the Supreme Court had
the mistake in the timeline. He added that the previously noted the defects surrounding Psu-80886
timeline published in the notice of initial hearing in in the case of Guico v. San Pedro.28 The said case
the Official Gazette for Psu-80886 was different involved the application of registration of Guico of
from the approved plan in Psu-80886/SWO-20609. a tract of land covered by Psu-80886, subdivided
He also noted some differences in the area of Psu- into eleven (11) lots, filed on November 4, 1930
80886 compared to Psu-80886/SWO-20609.25 before the Court of First Instance of Rizal (CFI).
These admissions show that Psu-80886 was flawed The said land originated from Pedro Lopez de Leon,
from the very beginning. Yaptinchay merely covered by Psu-16400. It was transferred to his son,
requested the conduct of Psu-80886/SWO-20609 in Mariano Lopez de Leon, and then one-third portion
order to resurrect or salvage the erroneous Psu- thereof was conveyed to Guico. Several oppositors
80886 and to wrongfully acquire OCT No. 242. It appeared therein to assail Guico's application. On
does not, however, erase the fact that Psu-80886, August 19, 1935, the CFI ruled that only Lot Nos. 1,
from which ALI's titles originated, is marred with 2, 3, 6, 7 and 10 may be registered in the name of
irregularities. This is a badge of fraud that further Guico.
runs counter to the legitimacy of the surveys that
ALI relied upon. On appeal, the CA disposed the case in this wise:

Eight, the RTC of Las Piñas continuously observed Adjudicamos a Eduardo C. Guico los lotes 2 y 3 de
the irregularities in Psu-80886. It stated that "the su plano y las porciones que quedan de las
total area of the property covered by the document adjudicadas a él por el Juzgado inferior y que no
bear many erasures, particularly two erasures as to están comprendidos en los terrenos reclamados por
the total area in terms of number and one erasure Valeriano Miranda, Nicasio San Pedro, José
as to that total area in terms of unit of Dollenton, Gregorio Arciaga, Donato Navarro,
León Navarro, Dionisio Dollenton, Basilio 80886: (1) his predecessor-in-interest did not
Navarro, Bernardo Mellama y Lorenzo Dollenton, submit any valid measurement of the estate from
debiendo al efecto presentar un plano enmendado which Psu-80886 was derived; and (2) that the
debidamente aprobado por el Director de Terrenos, applicant or his grantees failed to occupy or
confirmado así la decisión apelada en lo que cultivate the subject land continuously. These
estuviera conforme, y revocandola en lo que no findings are substantial and significant as these
estuviera.29 affect the validity of Psu-80886.

When translated, the text reads: ALI insisted that Guico v. San Pedro should
actually be construed in their favor, because the
We adjudicate to Eduardo C. Guico Lots 2 and 3 of Court affirmed the ruling of the CA which awarded
his plan and the portions that remain adjudicated to Lot Nos. 2 and 3 to Guico, hence, Psu-80886 was
him by the lower court and that are not included in valid.
the lands claimed by Valeriano Miranda, Nicasio
San Pedro, Jose Dollenton, Gregorio Arciaga, The Court is not persuaded.
Donato Navarro, Leon Navarro, Dionisio Dollenton,
Basilio Navarro, Bernardo Mellama, and Lorenzo A reading of the dispositive portion of the CA
Dollenton, under the obligation to present an decision in Guico v. San Pedro does not
amended properly approved plan to the Director categorically state that Lot Nos. 2 and 3 were
of Lands, confirming therefore the appealed absolutely and completely awarded to Guico. The
decision in what is consistent with this and award of the said lots was subject to the vital and
revoking it on what is not.30 primordial condition or obligation to present to the
court an amended, properly approved, plan to the
Undeterred, Guico filed an appeal before the Director of Lands. Evidently, the Court was not
Supreme Court alleging that the CA erred in satisfied with Psu-80886 because it lacked the
declaring that there was no imperfect title in favor requisites for a valid survey. Thus, it required Guico
of Pedro Lopez de Leon, his predecessor-in-interest. to secure an amended and correctly approved plan,
signed by the Director of Lands. The purpose of this
In its Decision dated June 20, 1941, the Court new plan was to confirm that the appealed decision
dismissed the appeal of Guico and affirmed the CA was consistent with the facts established therein.
ruling. It was held that "la solicitud de Pedro Lopez The records, however, did not show that Guico
de Leon composicion con el Estado no fue indeed secured an amended and properly approved
aprobada porque no pudo hacerse la medicion plan. Psu-80886/SWO-20609 obviously was not the
correspondiente. " Its translation stated that the required amended order because a special work
application of Pedro Lopez de Leon regarding the order is different from an amended survey.32
composition of the estate was not approved because Moreover, the said special work order was initiated
he was not able to submit the corresponding by Yaptinchay, and not Guico. The insufficiency of
measurements, referring to Psu-16400, from which Psu-80886 is evident in this decision.
Psu-80886 was derived.
Thus, as Guico did not subject Psu-80886 to a valid
In addition, the Supreme Court noted that "while amended approved plan, he was not awarded Lot
abundant proof is offered concerning the filing of Nos. 2 and 3 for registration. It can be seen from
the application for composition title by the original OCT Nos. 242, 244, and 1609 that Guico never
possessor, the record nowhere exhibits compliance secured their registration because the Court
with the operative requirement of said Section 45(a) discovered the anomalous Psu-80886. The Court's
of Act. No. 2874, that 'such applicants or grantees pronouncement in Guico v. San Pedro, although
and their heirs have occupied and cultivated said promulgated more than half a century ago, must be
lands continuously since the filing of their respected in accordance with the rule on judicial
applications."'31 adherence.

Consequently, the Court observed two major Lastly, the Court also agrees with the finding of the
irregularities in the application of Guico under Psu- CA in its February 8, 2005 decision that Psu-25909,
from which the titles of petitioners were sourced, already existing and vested. The indefeasibility of a
bears all the hallmarks of verity. It was established Torrens title should not be used as a means to
that Andres Diaz was the very first claimant of the perpetrate fraud against the rightful owner of real
subject property and was the proponent of Psu- property. Good faith must concur with registration
25909. The said survey clearly contained the because, otherwise, registration would be an
signatures of the surveyor and the Director of exercise in futility. A Torrens title does not furnish
Lands, as can be seen on its face. In stark contrast a shield for fraud, notwithstanding the long-standing
with Psu-80886, which contained alterations and rule that registration is a constructive notice of title
erasures, Psu-25909 has none. The original ofPsu- binding upon the whole world. The legal principle is
25909 was, likewise, on file with the Bureau of that if the registration of the land is fraudulent, the
Lands and a microfilm reproduction was readily person in whose name the land is registered holds it
obtained from the file of the said office, unlike in as a mere trustee.34
Psu-80886 and Psu-47909.
When a land registration decree is marred by severe
The RTC of Las Piñas shared this examination. It irregularity that discredits the integrity of the
ruled that Psu-25909 was a true copy of an official Torrens system, the Court will not think twice in
document on file with the Bureau of Lands. It also striking down such illegal title in order to protect
gave great weight and appreciation to the said the public against scrupulous and illicit land
survey because no irregularity was demonstrated in ownership. Thus, due to the numerous, blatant and
the preparation thereof. The trial court added that unjustifiable errors in Psu-47909, Psu-80886, and
Engr. Remolar, as the appropriate government Psu-80886/SWO-20609, these must be declared
custodian and court appointed commissioner, void. Likewise, OCT Nos. 242, 244, and 1609, their
certified the authenticity of Psu-25909. transfer certificates, and instruments of conveyances
that relied on the anomalous surveys, must be
Psu-25909 bore all the hallmarks of verity absolutely declared void ab initio.
because it contains the signatures of the surveyor
and the Director of Lands, and it did not contain When there is an overlapping
any erasure or alterations thereon. Likewise, a boundary in the titles, a
duly authenticated copy of Psu-25909 is readily verification survey must be
available in the Bureau of Lands. conducted

In contrast, the Court cannot subscribe to the Another argument of ALI is that the Court should
finding of the CA in its June 19, 2006 decision that have applied the rule that, in case of two certificates
the numerous defects in Psu-47909, Psu-80886 and of title purporting to include the same land, the
Psu-80886/SWO-20609 are "not enough to deprive earlier date prevails.
the assailed decree of registration of its conclusive The argument also fails.
effect, neither are they sufficient to arrive at the
conclusion that the survey was definitely, certainly, As discussed in the Decision of the Court, the rule
[and] conclusively spurious."33 The Court cannot that "in case of two certificates of title purporting to
close its eyes to the blatant defects on the surveys include the same land, the earlier date prevails" is
upon which the original titles of ALI were derived, not an absolute and conclusive rule; rather, it is
as reflected in their technical descriptions, simply merely a general rule. This was first discussed in
because its titles were registered. To allow these Legarda v. Saleeby,35 as follows:
certificates of title in the registration books, even
though these were sourced from invalid surveys and The question, who is the owner of land registered in
contain erroneous technical descriptions, would the name of two different persons, has been
tarnish and damage the Torrens system of presented to the courts in other jurisdictions. In
registration, rather than uphold its integrity. some jurisdictions, where the "torrens" system has
been adopted, the difficulty has been settled by
It is an enshrined principle in this jurisdiction that express statutory provision. In others it has been
registration is not a mode of acquiring ownership. A settled by the courts. Hogg, in his excellent
certificate of title merely confirms or records title discussion of the "Australian Torrens System," at
page 823, says: "The general rule is that in the case Several jurists or authors on land registration affirm
of two certificates of title, purporting to include the that the general and the exceptional rule in Legarda
same land, the earlier in date prevails, whether the v. Saleeby. In his book, Land Registration and
land comprised in the latter certificate be wholly, or Related Proceedings,39 Atty. Amado D. Aquino
only in part, comprised in the earlier certificate. xxx explained that the principle of according superiority
In successive registrations, where more than one to a certificate of title earlier in date cannot,
certificate is issued in respect of a particular estate however, apply if it was procured through fraud or
or interest in land, the person claiming under the was otherwise jurisdictionally flawed. Thus, if there
prior certificate is entitled to the estate or interest; is a compelling and genuine reason to set aside the
and that person is deemed to hold under the prior rule on the superiority of earlier registered title, the
certificate who is the holder of, or whose claim is Court may look into the validity of the title bearing
derived directly or indirectly from the person who the latter date of registration, taking into
was the holder of the earliest certificate issued in consideration the evidence presented by the parties.
respect thereof x x x.36
Similarly, in his book Property Registration Decree
Justice Leonen asserts that the Decision of the Court and Related Laws,40 retired Court of Appeals
went against the doctrine of "Primus Tempora, Justice Oswaldo D. Agcaoili affirmed that the
Portior Jure," or "First in Time, Stronger in Right." general rule – where two certificates purport to
This is because the mother title of the Spouses Yu's include the same land, the earlier in date prevails –
predecessor-in-interest was issued more than two is valid only absent any anomaly or irregularity
(2) decades after those issued to ALI's predecessors- tainting the process of registration.41 He further
in-interest, yet this did not prevent the Court from cites the exception in Legarda v. Saleeby that where
upholding the later issued title over the earlier the inclusion of land in the certificate of prior date
issued one. is a mistake, the mistake may be rectified by
holding the latter of the two certificates to be
The rule on superiority, however, is not absolute. conclusive. Indeed, a certificate of title is not
The same case of Legarda v. Saleeby explains the conclusive where it is the product of a faulty or
exception to the rule, viz.: fraudulent registration.42

Hogg adds however that, "if it can be clearly In Golloy v. Court of Appeals,43 there were two
ascertained by the ordinary rules of construction conflicting titles with overlapping boundaries. The
relating to written documents, that the inclusion of first title was registered on March 1, 1918, while the
the land in the certificate of title of prior date is a second title was registered on August 15, 1919.
mistake, the mistake may be rectified by holding Despite having been registered at a prior date, the
the latter of the two certificates of title to be Court did not allow the earlier registered title of the
conclusive."[37] respondents to prevail because of the continuing
possession of the petitioners therein and the laches
Accordingly, if the inclusion of the land in the committed by the respondents. Hence, the holder of
earlier registered title was a result of a mistake, then an earlier registered title does not, in all instances,
the latter registered title will prevail. The ratio absolutely triumph over a holder of a latter
decidendi of this exception is to prevent a title that registered title.
was earlier registered, which erroneously contained
a parcel of land that should not have been included, To reiterate, the general rule is that in case of two
from defeating a title that was later registered but is certificates of title purporting to include the same
legitimately entitled to the said land. It reinforced land, the earlier date prevails. The exception to the
the doctrine that "[r]egistering a piece of land under rule is that if the inclusion of the land in the earlier
the Torrens System does not create or vest title registered title was a result of a mistake, then the
because registration is not a mode of acquiring latter registered title will prevail.
ownership. A certificate of title is merely an
evidence of ownership or title over the particular When there are two registered
property described therein."38 titles with overlapping or
conflicting boundaries, the
court must conduct a Indeed, in case there are two registered titles with
verification survey overlapping boundaries, the more prudent and
technical approach would be to conduct a
Likewise, to subscribe to the argument of ALI – that verification survey over the titles. After the
the rule on the earlier dated title is absolute – would verification survey, the court would be given all the
be absurd. It will limit the court to a mere necessary and technical analysis and data over the
mechanical arbiter that will simply view the dates of two titles. At that point, the court can judiciously
the two registered titles with overlapping and properly determine whether to apply (1) the
boundaries to determine the prevailing title. general rule that in case of two certificates of title
purporting to include the same land, the earlier date
The better approach would be for the court to order prevails; (2) the exception that if the inclusion of
the conduct of a verification survey on the titles the land in the earlier registered title was a result of
which have overlapping boundaries. In Cambridge a mistake, then the latter registered title will prevail.
Realty and Resources Corp. v. Eridanus
Development, Inc.,44 it was ruled that a case of In this case, the Court must commend the RTC of
overlapping of boundaries or encroachment depends Las Piñas for taking the correct procedure in
on a reliable, if not accurate, verification survey; resolving such issue. When faced with the issue of
barring one, no overlapping or encroachment may two registered titles with overlapping boundaries
be proved successfully, for obvious reasons. The based on their surveys and technical descriptions, it
first step in the resolution of such cases is for the issued an Order47 dated December 5, 1997, which
court to direct the proper government agency directed the parties to conduct a verification survey
concerned to conduct a verification or relocation pursuant to the prescribed rules. Engr. Veronica
survey and submit a report to the court, or constitute Ardina-Remolar (Remolar), from the Bureau of
a panel of commissioners for the purpose. In that Lands of the DENR, was the court-appointed
case, the Court lamented that the trial court therein commissioner who supervised and coordinated the
did not order the conduct of a verification survey verification survey. Engrs. Rolando Nathaniel Pada
and the appointment of geodetic engineers as (Pada) and Alexander Ocampo (Ocampo) were the
commissioners, to wit: geodetic engineers for the Spouses Yu; while Engr.
Lucal Francisco (Francisco) was the geodetic
This is precisely the reason why the trial court engineer for ALI. They conducted actual
should have officially appointed a commissioner or verification survey on April 5, 6, 7 and 16, 1998 and
panel of commissioners and not leave the initiative June 8, 1998. Afterwards, Engr. Remolar submitted
to secure one to the parties: so that a thorough her Report48 dated November 4, 1998, to the trial
investigation, study and analysis of the parties' titles court, which stated that there were overlapping
could be made in order to provide, in a areas in the contested surveys. Likewise, Engrs.
comprehensive report, the necessary infom1ation Pada and Francisco submitted their Verification
that will guide it in resolving the case completely, Reports and Survey Plans,49 which were approved
and not merely leave the determination of the case by the DENR. Then, the parties presented their
to a consideration of the parties' more often than not respective witnesses.
self-serving evidence.45
The RTC of Las Piñas had a technical and accurate
Similarly, in Chua, et al. v. B.E. San Diego, Inc.,46 understanding and appreciation of the overlapping
the Court ruled that in overlapping boundary surveys of Psu-25909, Psu-47035, Psu-80886, and
disputes, the verification survey must be actually Psu-80886/SWO-20609. In its Decision dated May
conducted on the very land itself. In that case, the 7, 2001, it ruled in favor of the petitioner Spouses
verification survey conducted was merely based on Yu and it discussed extensively its observations and
the technical description of the defective titles. The findings regarding the overlapping areas, to wit:
opinion of the surveyor lacked authoritativeness
because his verification survey was not made on the From the evidence on record, it appears that the
land itself. following plans were made on the dates and by the
surveyor specified herein:
Survey No. PSU-25909 March 17, 1921 A.N. On the other hand, an examination of Plan PSU-
Feliciano 47035 (Exhibit "G") invites suspicion thereto. As
observed by Engineer Pada in his verification
Survey No. PSU-47035 October 21, 1925 A.N. survey report, the photocopy of plan PSU-47035
Feliciano submitted by the defendant shows that the plan
appears to have been done for one Estanislao
Survey No. PSU-80886 July 28, 1930 A.N. Mayuga, while in the certified true copy of the
Feliciano pertinent decree (Exhibit "HH"/Exhibit 20), it
appears that the same was done for a certain
Survey No. SWO-20609 March 6, 1931 A.N. Dominador Mayuga. Viewing this discrepancy in
Feliciano the light of the fact that the plan for PSU-47035 was
undertaken on October 21, 1925, or more than four
Plan PSU-25909 (Exhibit "F") invoked by the years after the survey for plan PSU-25909 was
plaintiffs and the authenticity of which is certified done, the same discrepancy leads the Court to
by appropriate government custodians including conclude that PSU-47035 is spurious and void.
Engineer Remolar, the court-designated
commissioner, appears to have been prepared on The third plan enumerated above, plan PSU-80886
March 17, 1921 for one Andres Diaz and recites the (Exhibit "II/Exhibit 29), prepared on July 28, 1930,
following entries: or more than five years since plan PSU-25909 was
done for Andres Diaz, also invites suspicion. An
"THE ORIGINAL FIELD NOTES, examination of the same reveals that the lower
COMPUTATIONS AND PLAN OF THIS right-hand corner of the plan, which bears the serial
SURVEY EXECUTED BY [A.N.] FELICIANO number PSU-80886, is manifestly different from the
HAVE BEEN CHECKED AND VERIFIED IN main document in terms of the intensity of its
THIS OFFICE IN ACCORDANCE WITH contrast, and that the change in the intensity of the
SECTIONS 1858 TO 1865, ACT 2711 AND ARE shading is abrupt as one examines the document
HEREBY APPROVED MAY 26, 1921." starting from the lower right-hand corner to
anywhere else in the same document. Also, it is
-and- worth observing that the main document, minus the
lower right-hand corner mentioned, does not
"This is to certify that this is a true and correct plan indicate anything to even suggest that it pertains to
of Psu-25909 as traced from the mounted paper of plan PSU-80886. For these reasons, the contention
plan Psu-25909 which is on file at T.R.S. Lands of the plaintiffs that this lower right hand corner of
Management Sector, N.C.R. the plan appears to be a spurious attachment to the
main document to make the main document look
"This a true copy of the plan [as] requested by the like it is actually plan PSU-80886, has merit.
Chief Technical Records Section, as contained in a
letter dated February 15, 1989. Another discrepancy invites further suspicion
under the circumstances. The main document bears
TEODORICO C. CALISTERIO what appears to be the actual signature of the
Chief, Topographic 7 Special Maps Section surveyor, Mr. A.N. Feliciano, while the lower right-
Traced by: F. SUMAGUE hand corner of the plan mentions only the name
Checked by: A.O. VENZON (Sgd.) 4/28/89 "Serafin P. Hidalgo – Director of Lands" with the
prefix "Sgd." But without any actual signature. An
Thus, the Court holds that plan PSU-25909 interesting query arises: Why would the document
(Exhibit "F") is a true copy of an official bear an actual signature of the surveyor without
document on file with the Bureau of Lands and bearing the signature of the Director of Lands which
is, therefore, entitled to great weight and in essence is the more important signature for
appreciation, there being no irregularity authentication purposes?
demonstrated in the preparation thereof.
Still another discrepancy is with respect to a
monument appearing in PSU-80886 (Exhibit "II").
At the upper off-right portion thereof are entries 1930 once more with different results, and still one
referring to a monument more specifically described more time in 1931 with still different results. The
as B.L.L.M. No. 4. According to Engineer Pada, only reasonable and logical conclusion under these
citing a certified document taken from the Land telling circumstances is that the second, third and
Management Bureau of the Department of last surveys corresponding to PSU-47035, PSU-
Environment and Natural Resources, this monument 80886 and PSU-80886/SWO-20609 are all spurious
was established only on November 27, 1937 (TSN, and void, too.
March 24, 2000, pp. 18-20) which is more than
seven years after PSU-80886 was undertaken. How The Court went through the record of the case and
a monument which was established only in no satisfactory explanation has been offered by the
November 1937 can actually exist in a plan made defendant regarding these discrepancies. Even the
on July 28, 1930 is absolutely incredible. documentary evidence presented by the defendant
offers no plausible reason for the Court to reject the
In view of the foregoing, the Court finds good contentions of the plaintiffs. This all the more
reason to consider PSU-80886 (Exhibit "II" and 29), strengthens the view of the Court to effect that PSU-
relied upon by the defendant, spurious and void as 47035, PSU-80886 and PSU-80886/SWO-20609
well: are spurious and void ab initio. This view is also
strengthened by the credentials of Engineer Pada
The fourth and last plan mentioned is SWO-20609, whom the Court considers as a very credible
done on March 6, 1931. witness.

It is admitted by the geodetic engineer of the All in all, the Court is convinced that the title of
defendant that a specific work order (SWO) co- the plaintiffs to the properties in dispute is
exists with a survey plan, and that in particular, superior over those invoked by the defendant.50
SWO-20609 was undertaken in view of alleged
errors in plan PSU-80886 (TSN, February 16, 2001, As discussed in the Decision of the Court, the trial
pp. 31-32). Therefore, SWO-20609 must be court was able to determine that the exception to
evaluated in relation to plan PSU-80886. From this the rule is applicable – if the inclusion of the land
perspective, the Court also notes that SWO-20609 is in the earlier registered title was a result of a
attended with discrepancies thus rendering it devoid mistake, then the latter registered title will prevail –
of any credence. because the verification survey showed that the
survey on the titles of ALI contained numerous
For the record, in PSU-80886 (Exhibit "II"/Exhibits anomalies.
29 and 30), the land concerned appears to have been
surveyed for one Eduardo C. Guico, while in PSU- The case of Spouses Carpo v.
80886/SWO-20609 (Exhibit "H"/Exhibit 35), the Ayala Land, Inc. does bar the
same land appears to have been surveyed for one adjudication of this present
Alberto Yaptinchay. In addition, it is evident in case
PSU-80886 (Exhibits 29 and 30) that vital entries
regarding the total area of the property covered by One argument raised for ALI is that the Court could
the document bear many erasures, particularly two not anymore examine the validity of OCT No. 242
erasures as to the total area in terms of number and because it was already declared valid in Spouses
one erasure as to that total area in terms of unit of Carpo v. Ayala Land, Inc.51 (Spouses Carpo v.
measurement. ALI). Justice Leonen agrees that since the Court
already resolved the validity o£ OCT No. 242 and
The Court likewise notes with suspicion the fact 1609 in the said case and Realty Sales v. IAC, then it
that all four survey plans were purportedly cannot be questioned.
undertaken by one and the same surveyor, a Mr.
A.N. Feliciano. It seems extremely unusual why the The argument is unmeritorious.
same A.N. Feliciano, who surveyed the same
property for Andres Diaz in 1921, would do so In Spouses Carpo v. ALI, the contested titles were
again in 1925 with different results, and again in TCT No. 296463, registered under the Spouses
Carpo, which was sourced from OCT No. 8575; infirmities; while OCT No. 8510 bore the hallmarks
and TCT No. T-5333, registered under ALI, which of validity.
was sourced from OCT No. 242. Evidently, OCT
No. 242 is a vast tract of land and it borders several In fine, there is nothing in Spouses Carpo v. ALI
other registered parcels of land. The Court ruled and Realty Sales v. IAC that would prevent the
therein that insofar as the contested lands are judgment of the Court in this present case as they
concerned, TCT No. T-5333, which was sourced pertain to completely different subject matters.
from OCT No. 242, prevails over TCT No. 296463,
which was sourced from OCT No. 8575 because the A void title can always be attacked
Spouses Carpo utterly failed to present evidence
regarding the irregularity of the issuance and survey In its last ditch attempt to overturn the Decision of
of OCT No. 242. Manifestly, the case therein was the Court, ALI reiterates that the Court cannot
only decided by the trial court on the basis of a anymore assail the validity of its titles because the
summary judgment. No verification survey was cause of action of petitioners has prescribed.
conducted. Thus, insofar as TCT No. 296463 and
TCT No: T-5333 are concerned, the latter triumphs. The argument likewise fails.
There is nothing therein which prevented any
adjudication on the validity of OCT No. 242 with As discussed in the Decision, between OCT No.
respect to other bordering titles aside from that of 8510 and OCT Nos. 1609, 242 and 244, latter titles
OCT No. 8575. are null and void due to the invalid surveys and
technical descriptions. It is a well-settled rule that a
In Realty Sales v. IAC, one of the contested titles void title cannot give rise to a valid title.52 Further,
was TCT No. 2048, which was sourced from OCT an action to declare the nullity of a void title does
No. 1609. Again, these OCT Nos. 1609 and 242 not prescribe and is susceptible to direct, as well as
cover a vast tract of land and it borders several other to collateral attack.53
registered parcels of land, thus, it was later on
divided into several parcels of land. In certain instances, even an action for
reconveyance involving a void title does not
On the contrary, in this case, the contested titles are prescribe. Uy v. Court of Appeals54 remarkably
TCT Nos. 287416, 287411, 287412, 39408 and explained the prescriptive periods of an action for
64549, registered under petitioners, which was reconveyance depending on the ground relied upon,
sourced from OCT No. 8510; and TCT Nos. to wit:
41325, 41263, 41262 and 41261, registered under
ALI, which was sourced from OCT No. 1609, 242 The law creates the obligation of the trustee to
and 244. Accordingly, the contesting titles are reconvey the property and its title in favor of the
different from that of Spouses Carpo v. ALI and true owner. Correlating Section 53, paragraph 3 of
Realty Sales v. IAC. Moreover, the present case only PD No. 1529 and Article 1456 of the Civil Code
adjudicates the title in favor of petitioners insofar with Article 1144 (2) of the Civil Code, the
as they overlap with the erroneous titles of ALI prescriptive period for the reconveyance of
because the issue involves overlapping boundaries fraudulently registered real property is ten (10)
in different registered titles. Thus, the present case years reckoned from the date of the issuance of the
does not in any way affect the controversy between certificate of title. This ten-year prescriptive period
TCT No. 296463 and TCT No. T-5333 in Spouses begins to run from the date the adverse party
Carpo v. ALI. repudiates the implied trust, which repudiation takes
place when the adverse party registers the land. An
More importantly, in this case, there was a exception to this rule is when the party seeking
presentation of evidence and a verification survey reconveyance based on implied or constructive trust
was conducted between OCT No. 8510 and OCT is in actual, continuous and peaceful possession of
Nos. 1609, 242 and 244. After a rigorous study by the property involved. Prescription does not
technical experts, it was determined that OCT Nos. commence to run against him because the action
1609, 242 and 244 suffered from numerous would be in the nature of a suit for quieting of title,
an action that is imprescriptible.
The foregoing cases on the prescriptibility of Likewise, it must be noted that the present action
actions for reconveyance apply when the action is involves two consolidated petitions: the petition of
based on fraud, or when the contract used as basis the Spouses Yu and the petition of the heirs of the
for the action is voidable. Under Article 1390 of the Spouses Diaz. Glaringly, ALI never questioned the
Civil Code, a contract is voidable when the consent timeliness of the petition of the heirs of the Spouses
of one of the contracting parties is vitiated by Diaz because the action was filed within the
mistake, violence, intimidation, undue influence or prescriptive period under Section 38 of Act No.
fraud. When the consent is totally absent and not 496, as amended.56 The action of the heirs of the
merely vitiated, the contract is void. An action for Spouses Diaz originated when the OCT No. 8510
reconveyance may also be based on a void was issued on May 19, 1970. Then, within the one-
contract. When the action for reconveyance is year period, on May 17, 1971, CPJ Corporation,
based on a void contract, as when there was no then owner of the land covered by TCT No. 190713,
consent on the part of the alleged vendor, the which originated from OCT No. 242, filed an action
action is imprescriptible. The property may be for review of the decree of registration against the
reconveyed to the true owner, notwithstanding the Spouses Diaz. Accordingly, the RTC and the CA
TCTs already issued in another's name. The considered the case because it was timely filed.
issuance of a certificate of title in the latter's favor Necessarily, the Court can also adjudicate the merits
could not vest upon him or her ownership of the of the case with respect to OCT No. 8510, issued in
property; neither could it validate the purchase the name of the Spouses Diaz.
thereof which is null and void. Registration does not
vest title; it is merely the evidence of such title. Our Unfortunately, ALI cannot be considered an
land registration laws do not give the holder any innocent purchaser for value of the subject
better title than what he actually has. Being null and properties under OCT Nos. 1609, 242 and
void, the sale produces no legal effects whatsoever. 244.1âшphi1 As discussed by the RTC of Las
Piñas, when ALI purchased the subject lots from
Whether an action for reconveyance prescribes or their predecessors-in-interest in 1988, the titles bore
not is therefore determined by the nature of the notices of the pending cases and adverse claims
action, that is, whether it is founded on a claim of sufficient to place it on guard. In the TCTs of ALI,
the existence of an implied or constructive trust, or the notices of lis pendens indicated therein were
one based on the existence of a void or inexistent sufficient notice that the ownership of the properties
contract. x x x.55 were being disputed.

Thus, petitioners may always attack the validity of Evidently, ALI cannot invoke. mere rules of
ALI's void title. Accordingly, in this case, the technicality to hide the inescapable invalidity of
Spouses Yu sought to reconvey to them once and their titles, which were sourced from OCT Nos.
for all the titles over the subject properties. To 1609, 242 and 244 vis-à-vis the titles of petitioners,
prove that they had a superior right, they questioned which were sourced from OCT No. 1609.
the validity of the surveys which were the bases of
OCT Nos. 242, 244 and 1609, the origin of ALI's To recall, ownership is different from a certificate
TCTs. Moreover, they also sought to recover the of title. A certificate of title is merely an evidence of
possession that was clandestinely taken away from ownership or title over the particular property
them. Thus, as the subject matter of this case is the described therein, and it cannot be used to protect a
ownership and possession of the subject properties, usurper from the true owner; nor can it be used as a
the Spouses Yu's complaint is an action for shield for the commission of fraud; neither does it
reconveyance, which is not prohibited by Section 38 permit one to enrich himself at the expense of
of Act No. 496. The title under OCT Nos. 242, 244 others.58 Thus, the Court, in its July 26, 2017
and 1609, cannot be transferred or conveyed to any Decision, allowed the action of the Spouses Yu
person because it is a void title. Hence, ALI cannot because it is an action for reconveyance that attacks
acquire a lawful title because these were sourced the right of ownership of ALI over the land,
from OCT Nos. 242, 244 and 1609, and the said resulting into void contracts of conveyances. As
void title can always be attacked, whether directly discussed in the said Decision, between OCT No.
or collaterally. 8510 and OCT Nos. 1609, 242 and 244, the latter
titles are null and void due to the invalid surveys
and technical descriptions. It is settled that a void
title cannot give rise to a valid title,59 and that an
action to declare the nullity of a void title does not
prescribe and is susceptible to direct, as well as to
collateral attack.60

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