REYES VS. MONTEMAYOR G.R. NO. 166516 September 3, 2009 I. FACTS Sps.

Reyes bought the disputed land to Marciano Cuevas as evidenced of Deed of Absolute Sale, Owners Duplicate Copy and paid taxes, however, the former unable to register the sale and effect the transfer of certificate of title to their names. In 1993, the Sps. Went to the RD where they were informed therein that the subject property was sold by Marciano to Montemayor and a TCT was issued in latters name. In the RTC, Sps. Reyes averred that Montemayor acquired the TCT thru fraud as it was simulated and fictitious and that the signature of Marciano was forged which was confirmed by the latter during the pre-trial. However, Montemayor insist that she has a better right being the first registrant of the Sale and she was in good faith. Thus, RTC rendered its decision in favor of Montemayor and was affirmed by the CA. Pursuant to the said decision of the RTC and the CA, the case was elevated to the SC through petition for review on certiorari. II. ISSUE Whether or not Montemayor has a better right over the property considering that she was the first registrant of the sale. III. HELD No. Montemayors unabashed confession that she knew of the dubiousness of her title from the very beginning is contrary to the concept of good faith. Marciano only sold the subject property to Sps. Reyes, and did not sell it a second time to Montemayor. As a consequence, the rules on double sale are irrelevant. The court the proceeds to rule on consequence of Montemayors fraudulent registration of the subject property in her name and declared that a forged deed is a nullity and conveys no title. IV. LESSON/SIGNIFICANCE In all cases of registration procured by fraud, the owner may pursue all his legal and equitable remedies against the parties to such fraud without prejudice, however, to the rights of the innocent holder for value of certificate of title. After the entry of the decree of registration on the original petition or application, any subsequent registration procured by the presentation of a forged duplicate certificate of title, or of forged deed or other instrument, shall be null and void.