Republic of the Philippines SUPREME COURT FIRST DIVISION G.R. No. 152658.

July 29, 2005 LILY ELIZA ET! RA"O#GUERRERO, EN MAURICIO P. RA"O, 1 ROLAN$ P. RA"O, JR., O%ELIA RA"O#&UIESTAS, !EIRS O% CORPUSINIA RA"O#NIOR '()*ly+ GERSON U. NIOR, MAR, GERRY . NIOR, CLI%% RIC!AR$ . NIOR, RYAN . NIOR, -I$MAR, . NIOR, S!ERRY ANNE . NIOR, .*/.*0*'1*2 3y LILY ELIZA ET! RA"O#GUERRERO (0 14*5. (11o.'*y#5'#6(71, ('2 !ONORA LE %LORENTINO A. TUASON, JR., P.*0525'8 Ju28*, R*85o'(l T.5(l Cou.1, .('74 199, M(:(15 C51y, Petitioners, vs. E$-AR$ P. RA"O, .*/.*0*'1*2 3y 450 (11o.'*y#5'#6(71 %ATIMA C. RA"O, respondent, ('2 $A"I$ . $IAZ, JR., intervenor#respondent. DECISION CARPIO, J.+ The Case efore the Court is a petition for revie!" assailin# the Decision$ of "% Dece&ber "''% of the Court of (ppeals in C()*.R. CV No. +,,-.. The Court of (ppeals reverse/ the Decision . of %% 0a1 "''' of the Re#ional Trial Court of 0a2ati, ranch No. %$-, in Civil Case No. -,)%$,- /en1in# respon/ents3 pra1er to partition the sub4ect properties. (ntece/ent Facts Spouses 0auricio ravo 560auricio67 an/ Si&ona 8 (n/a1a ravo 56Si&ona67 o!ne/ t!o parcels of lan/ 56Properties67 &easurin# "9, an/ "-% s:uare &eters an/ locate/ alon# Evan#elista Street, 0a2ati Cit1, 0etro 0anila. The Properties are re#istere/ un/er TCT Nos. 89--- an/ 8-''' issue/ b1 the Re#ister of Dee/s of Ri;al on "$ 0a1 %-89. The Properties contain a lar#e resi/ential /!ellin#, a s&aller house an/ other i&prove&ents. 0auricio an/ Si&ona ha/ three chil/ren ) Rolan/, Cesar an/ <il1, all surna&e/ ravo. Cesar /ie/ !ithout issue. <il1 ravo &arrie/ Davi/ Dia;, an/ ha/ a son, Davi/ . Dia;, =r. 56Davi/ =r.67. Rolan/ ha/ si> chil/ren, na&el1, <il1 Eli;abeth ravo)*uerrero 56Eli;abeth67, E/!ar/ ravo 56E/!ar/67, Rolan/ ravo, =r. 56Rolan/ =r.67, Senia ravo, en4a&in 0auricio ravo, an/ their half)sister, Ofelia ravo 56Ofelia67. Si&ona e>ecute/ a *eneral Po!er of (ttorne1 56*P(67 on %, =une %-++ appointin# 0auricio as her attorne1)in)fact. In the *P(, Si&ona authori;e/ 0auricio to 6&ort#a#e or other!ise h1pothecate, sell, assi#n an/ /ispose of an1 an/ all of &1 propert1, real, personal or &i>e/, of an1 2in/ !hatsoever an/ !heresoever situate/, or an1 interest therein >>>.6 + 0auricio subse:uentl1 &ort#a#e/ the Properties to the Philippine National an2 5PN 7 an/ Develop&ent an2 of the Philippines 5D P7 for P%',''' an/ P8,''', respectivel1., On "8 October %-,', 0auricio e>ecute/ a Dee/ of Sale !ith (ssu&ption of Real Estate 0ort#a#e 56Dee/ of Sale67 conve1in# the Properties to 6Rolan/ (. ravo, Ofelia (. ravo an/ Eli;abeth

ravo69 56ven/ees67. The sale !as con/itione/ on the pa1&ent of P%,''' an/ on the assu&ption b1 the ven/ees of the PN an/ D P &ort#a#es over the Properties. (s certifie/ b1 the Cler2 of Court of the Re#ional Trial Court of 0anila, the Dee/ of Sale !as notari;e/ b1 (tt1. Victorio ?. *u;&an on "9 October %-,' an/ entere/ in his Notarial Re#ister.- @o!ever, the Dee/ of Sale !as not annotate/ on TCT Nos. 89--- an/ 8-'''. Neither !as it presente/ to PN an/ D P. The &orta#e loans an/ the receipts for loan pa1&ents issue/ b1 PN an/ D P continue/ to be in 0auricio3s na&e even after his /eath on "' Nove&ber %-,$. Si&ona /ie/ in %-,,. On "$ =une %--,, E/!ar/, represente/ b1 his !ife, Fati&a ravo, file/ an action for the 4u/icial partition of the Properties. E/!ar/ clai&e/ that he an/ the other #ran/chil/ren of 0auricio an/ Si&ona are co)o!ners of the Properties b1 succession. Despite this, petitioners refuse/ to share !ith hi& the possession an/ rental inco&e of the Properties. E/!ar/ later a&en/e/ his co&plaint to inclu/e a pra1er to annul the Dee/ of Sale, !hich he clai&e/ !as &erel1 si&ulate/ to pre4u/ice the other heirs. In %---, Davi/ =r., !hose parents /ie/ in %-.. an/ !ho !as subse:uentl1 raise/ b1 Si&ona, &ove/ to intervene in the case. Davi/ =r. file/ a co&plaint)in)intervention i&pu#nin# the vali/it1 of the Dee/ of Sale an/ pra1in# for the partition of the Properties a&on# the survivin# heirs of 0auricio an/ Si&ona. The trial court allo!e/ the intervention in its Or/er /ate/ 8 0a1 %---. %' The Rulin# of the Trial Court The trial court uphel/ 0auricio3s sale of the Properties to the ven/ees. The trial court rule/ that the sale /i/ not pre4u/ice the co&pulsor1 heirs, as the Properties !ere conve1e/ for valuable consi/eration. The trial court also note/ that the Dee/ of Sale !as /ul1 notari;e/ an/ !as in e>istence for &an1 1ears !ithout :uestion about its vali/it1. The /ispositive portion of the trial court3s Decision of %% 0a1 "''' rea/sA B@EREFORE, pre&ises consi/ere/, the Court hereb1 DENIES the =CDICI(< P(RTITION of the properties covere/ b1 TCT Nos. 89--- an/ 8-''' re#istere/ !ith the Office of the Re#ister of Dee/s of Ri;al. SO ORDERED.%% Dissatisfie/, E/!ar/ an/ Davi/ =r. 56respon/ents67 file/ a 4oint appeal to the Court of (ppeals. The Rulin# of the Court of (ppeals Citin# (rticle %++ of the Civil Co/e 56(rticle %++67, the Court of (ppeals /eclare/ the Dee/ of Sale voi/ for lac2 of Si&ona3s consent. The appellate court hel/ that the *P( e>ecute/ b1 Si&ona in %-++ !as not sufficient to authori;e 0auricio to sell the Properties because (rticle %9,9 of the Civil Co/e 56(rticle %9,967 re:uires a special po!er of attorne1 for such transactions. The appellate court reasone/ that the *P( !as e>ecute/ &erel1 to enable 0auricio to &ort#a#e the Properties, not to sell the&. The Court of (ppeals also foun/ that there !as insufficient proof that the ven/ees &a/e the &ort#a#e pa1&ents on the Properties, since the PN an/ D P receipts !ere issue/ in 0auricio3s

na&e. The appellate court opine/ that the rental inco&e of the Properties, !hich the ven/ees never share/ !ith respon/ents, !as sufficient to cover the &ort#a#e pa1&ents to PN an/ D P. The Court of (ppeals /eclare/ the Dee/ of Sale voi/ an/ or/ere/ the partition of the Properties in its Decision of "% Dece&ber "''% 56C( Decision67, as follo!sA B@EREFORE, the /ecision of the Re#ional Trial Court of 0a2ati Cit1, 0etro)0anila, ranch %$D-E /ate/ %% 0a1 "'''D,E revie! of !hich is sou#ht in these procee/in#sD,E is REVERSED. %. The Dee/ of Sale !ith (ssu&ption of Real Estate 0ort#a#e 5E>h. .7 /ate/ "9 October %-,' is hereb1 /eclare/ null an/ voi/F ". =u/icial Partition on the :uestione/ properties is hereb1 *R(NTED in the follo!in# &annerA (. In representation of his /ecease/ &other, <I<G R(VO)DI(H, intervenor D(VID DI(H, =R., is entitle/ to one)half 5%I"7 interest of the sub4ect propertiesF . Plaintiff)appellant EDB(RD R(VO an/ the rest of the five siblin#s, na&el1A <I<G E<IH( ET@, EDB(RD, RO<(ND, =R., SENI(, EN=(0IN an/ OFE<I( are entitle/ to one)si>th 5%I+7 representin# the other half portion of the sub4ect propertiesF C. Plaintiff)appellant E/!ar/ ravo, intervenor D(VID DI(H, =R., SENI( an/ EN=(0IN shall rei&burse the /efen/ant)appellees <I<G E<IH( ET@, OFE<I( an/ RO<(ND the su& of One Thousan/ 5P%,'''.''7 PESOS representin# the consi/eration pai/ on the :uestione/ /ee/ of sale !ith assu&ption of &ort#a#e !ith interest of si> 5+7 percent per annu& effective "9 October %-,' until full1 pai/. SO ORDERED.%" The Issues Petitioners see2 a reversal of the Decision of the Court of (ppeals, raisin# these issuesA %. B@ET@ER T@E COCRT OF (PPE(<S ERRED IN NOT CP@O<DIN* T@E V(<IDITG (ND ENFORCE0ENT OF T@E DEED OF S(<E BIT@ (SSC0PTION OF 0ORT*(*E. ". B@ET@ER T@E COCRT OF (PPE(<S ERRED IN ORDERIN* T@E P(RTITION OF T@E PROPERTG IN ?CESTION.%$ (t the least, petitioners ar#ue that the sub4ect sale is vali/ as to 0auricio3s share in the Properties. On the other han/, respon/ents &aintain that the1 are co)o!ners of the Properties b1 succession. Respon/ents ar#ue that the sale of the con4u#al Properties is voi/ becauseA 5%7 0auricio e>ecute/ the Dee/ of Sale !ithout Si&ona3s consentF an/ 5"7 the sale !as &erel1 si&ulate/, as sho!n b1 the #rossl1 ina/e:uate consi/eration 0auricio receive/ for the Properties. Bhile this case !as pen/in#, <eoni/a (n/a1a <olon# 56<eoni/a67, Davi/ =r.3s aunt, an/ (tt1. Cen/aJa, respon/ents3 counsel, infor&e/ the Court that Davi/ =r. /ie/ on %. Septe&ber "''.. (fter!ar/s, <eoni/a an/ Eli;abeth !rote separate letters as2in# for the resolution of this case. (tt1. Cen/aJa later file/ an ur#ent &otion to annotate attorne13s lien on TCT Nos. 89--- an/ 8-'''. In its Resolution /ate/ %' Nove&ber "''., %. the Court note/ the notice of Davi/ =r.3s /eath, the letters

!ritten b1 <eoni/a an/ Eli;abeth, an/ #rante/ the &otion to annotate attorne13s lien on TCT Nos. 89--- an/ 8-'''. The Rulin# of the Court The petition is partl1 &eritorious. The :uestions of !hether Si&ona consente/ to the Dee/ of Sale an/ !hether the sub4ect sale !as si&ulate/ are factual in nature. The rule is factual fin/in#s of the Court of (ppeals are bin/in# on this Court. @o!ever, there are e>ceptions, such as !hen the factual fin/in#s of the Court of (ppeals an/ the trial court are contra/ictor1, or !hen the evi/ence on recor/ /oes not support the factual fin/in#s.%8 ecause these e>ceptions obtain in the present case, the Court !ill consi/er these issues. On the Requirement of the Wifes Consent Be hol/ that the Court of (ppeals erre/ !hen it /eclare/ the Dee/ of Sale voi/ base/ on (rticle %++, !hich statesA (rt. %++. Cnless the !ife has been /eclare/ a non compos mentis or a spen/thrift, or is un/er civil inter/iction or is confine/ in a leprosariu&, the husban/ cannot alienate or encu&ber an1 real propert1 of the con4u#al partnership !ithout the !ife3s consent. If she refuses unreasonabl1 to #ive her consent, the court &a1 co&pel her to #rant the sa&e. This article shall not appl1 to propert1 ac:uire/ b1 the con4u#al partnerships before the effective /ate of this Co/e. (rticle %++ e>pressl1 applies onl1 to properties ac:uire/ b1 the con4u#al partnership after the effectivit1 of the Civil Co/e of the Philippines 56Civil Co/e67. The Civil Co/e ca&e into force on $' (u#ust %-8'.%+ (lthou#h there is no /ispute that the Properties !ere con4u#al properties of 0auricio an/ Si&ona, the recor/s /o not sho!, an/ the parties /i/ not stipulate, !hen the Properties !ere ac:uire/.%, Cn/er (rticle %.%$ of the ol/ Spanish Civil Co/e, the husban/ coul/ alienate con4u#al partnership propert1 for valuable consi/eration !ithout the !ife3s consent. %9 Even un/er the present Civil Co/e, ho!ever, the Dee/ of Sale is not voi/. It is !ell)settle/ that contracts alienatin# con4u#al real propert1 !ithout the !ife3s consent are &erel1 voi/able un/er the Civil Co/e K that is, bin/in# on the parties unless annulle/ b1 a co&petent court K an/ not voi/ ab initio.%(rticle %++ &ust be rea/ in con4unction !ith (rticle %,$ of the Civil Co/e 56(rticle %,$67. The latter prescribes certain con/itions before a sale of con4u#al propert1 can be annulle/ for lac2 of the !ife3s consent, as follo!sA (rt. %,$. The ;56* )(y, 2u.5'8 14* )(..5(8* ('2 ;5145' 1*' y*(.0 6.o) 14* 1.('0(715o' :uestione/, as2 the courts for the annul&ent of an1 contract of the husban/ entere/ into !ithout her consent, !hen such consent is re:uire/, or an1 act or contract of the husban/ !hich ten/s to /efrau/ her or i&pair her interest in the con4u#al partnership propert1. S4oul2 14* ;56* 6(5l 1o *<*.750* 1450 .5841, 04* o. 4*. 4*5.0 (61*. 14* 2500olu15o' o6 14* )(..5(8*, )(y 2*)('2 14* =(lu* o6 /.o/*.1y 6.(u2ul*'1ly (l5*'(1*2 b1 the husban/. 5E&phasis supplie/7 Cn/er the Civil Co/e, onl1 the !ife can as2 to annul a contract that /isposes of con4u#al real propert1 !ithout her consent. The !ife &ust file the action for annul&ent /urin# the &arria#e an/

!ithin ten 1ears fro& the :uestione/ transaction. (rticle %,$ is e>plicit on the re&e/ies available if the !ife fails to e>ercise this ri#ht !ithin the specifie/ perio/. In such case, the !ife or her heirs can onl1 /e&an/ the value of the propert1 provi/e/ the1 prove that the husban/ frau/ulentl1 alienate/ the propert1. Frau/ is never presu&e/, but &ust be establishe/ b1 clear an/ convincin# evi/ence. "' Respon/ents3 action to annul the Dee/ of Sale base/ on (rticle %++ &ust fail for havin# been file/ out of ti&e. The &arria#e of 0auricio an/ Si&ona !as /issolve/ !hen 0auricio /ie/ in %-,$. 0ore than ten 1ears have passe/ since the e>ecution of the Dee/ of Sale. Further, respon/ents, !ho are Si&ona3s heirs, are not the parties !ho can invo2e (rticle %++. (rticle %,$ reserves that re&e/1 to the !ife alone. Onl1 Si&ona ha/ the ri#ht to have the sale of the Properties annulle/ on the #roun/ that 0auricio sol/ the Properties !ithout her consent. Si&ona, ho!ever, /i/ not assail the Dee/ of Sale /urin# her &arria#e or even after 0auricio3s /eath. The recor/s are bereft of an1 in/ication that Si&ona :uestione/ the sale of the Properties at an1 ti&e. Si&ona /i/ not even atte&pt to ta2e possession of or resi/e on the Properties after 0auricio3s /eath. Davi/ =r., !ho !as raise/ b1 Si&ona, testifie/ that he an/ Si&ona continue/ to live in Pasa1 Cit1 after 0auricio3s /eath, !hile her chil/ren an/ other #ran/chil/ren resi/e/ on the Properties."% Be also a#ree !ith the trial court that Si&ona authori;e/ 0auricio to /ispose of the Properties !hen she e>ecute/ the *P(. True, (rticle %9,9 re:uires a special po!er of attorne1 for an a#ent to e>ecute a contract that transfers the o!nership of an i&&ovable. @o!ever, the Court has clarifie/ that (rticle %9,9 refers to the nature of the authori;ation, not to its for&. "" Even if a /ocu&ent is title/ as a #eneral po!er of attorne1, the re:uire&ent of a special po!er of attorne1 is &et if there is a clear &an/ate fro& the principal specificall1 authori;in# the perfor&ance of the act. "$ In Veloso v. Court of Appeals,". the Court e>plaine/ that a #eneral po!er of attorne1 coul/ contain a special po!er to sell that satisfies the re:uire&ent of (rticle %9,9, thusA (n e>a&ination of the recor/s sho!e/ that the assaile/ po!er of attorne1 !as vali/ an/ re#ular on its face. It !as notari;e/ an/ as such, it carries the evi/entiar1 !ei#ht conferre/ upon it !ith respect to its /ue e>ecution. Bhile it is true that it !as /eno&inate/ as a #eneral po!er of attorne1, a perusal thereof reveale/ that it state/ an authorit1 to sell, to !itA 6". To bu1 or sell, hire or lease, &ort#a#e or other!ise h1pothecate lan/s, tene&ents an/ here/ita&ents or other for&s of real propert1, &ore specificall1 TCT No. .-%$9, upon such ter&s an/ con/itions an/ un/er such covenants as &1 sai/ attorne1 shall /ee& fit an/ proper.6 Thus, there !as no nee/ to e>ecute a separate an/ special po!er of attorne1 since the #eneral po!er of attorne1 ha/ e>pressl1 authori;e/ the a#ent or attorne1 in fact the po!er to sell the sub4ect propert1. T4* 0/*75(l /o;*. o6 (11o.'*y 7(' 3* 5'7lu2*2 5' 14* 8*'*.(l /o;*. ;4*' 51 50 0/*7565*2 14*.*5' 14* (71 o. 1.('0(715o' 6o. ;4574 14* 0/*75(l /o;*. 50 .*>u5.*2 . 5E&phasis supplie/7 In this case, Si&ona e>pressl1 authori;e/ 0auricio in the *P( to 60*ll, (0058' ('2 250/o0* o6 ('y ('2 (ll o6 )y /.o/*.1y, real, personal or &i>e/, of an1 2in/ !hatsoever an/ !heresoever situate/, or an1 interest therein >>>6 as !ell as to 6act as &1 #eneral representative an/ a#ent, !ith full authorit1 to bu1, sell, ne#otiate an/ contract for &e an/ in &1 behalf.6 "8 Ta2en to#ether, these provisions constitute a clear an/ specific &an/ate to 0auricio to sell the Properties. Even if it is calle/ a 6#eneral po!er of attorne1,6 the specific provisions in the *P( are sufficient for the

purposes of (rticle %9,9. These provisions in the *P( li2e!ise in/icate that Si&ona consente/ to the sale of the Properties. Whether the Sale of the Properties was Simulated or is Void for Gross Inadequacy of Price Be point out that the la! on le#iti&e /oes not bar the /isposition of propert1 for valuable consi/eration to /escen/ants or co&pulsor1 heirs. In a sale, cash of e:uivalent value replaces the propert1 ta2en fro& the estate. "+ There is no /i&inution of the estate but &erel1 a substitution in values. Donations an/ other /ispositions b1 #ratuitous title, on the other han/, &ust be inclu/e/ in the co&putation of le#iti&es.", Respon/ents, ho!ever, conten/ that the sale of the Properties !as &erel1 si&ulate/. (s proof, respon/ents point to the consi/eration of P%,''' in the Dee/ of Sale, !hich respon/ents clai& is #rossl1 ina/e:uate co&pare/ to the actual value of the Properties. Si&ulation of contract an/ #ross ina/e:uac1 of price are /istinct le#al concepts, !ith /ifferent effects. Bhen the parties to an alle#e/ contract /o not reall1 inten/ to be boun/ b1 it, the contract is si&ulate/ an/ voi/."9 ( si&ulate/ or fictitious contract has no le#al effect !hatsoever "- because there is no real a#ree&ent bet!een the parties. In contrast, a contract !ith ina/e:uate consi/eration &a1 nevertheless e&bo/1 a true a#ree&ent bet!een the parties. ( contract of sale is a consensual contract, !hich beco&es vali/ an/ bin/in# upon the &eetin# of &in/s of the parties on the price an/ the ob4ect of the sale. $' The concept of a si&ulate/ sale is thus inco&patible !ith ina/e:uac1 of price. Bhen the parties a#ree on a price as the actual consi/eration, the sale is not si&ulate/ /espite the ina/e:uac1 of the price. $% *ross ina/e:uac1 of price b1 itself !ill not result in a voi/ contract. *ross ina/e:uac1 of price /oes not even affect the vali/it1 of a contract of sale, unless it si#nifies a /efect in the consent or that the parties actuall1 inten/e/ a /onation or so&e other contract. $" Ina/e:uac1 of cause !ill not invali/ate a contract unless there has been frau/, &ista2e or un/ue influence. $$ In this case, respon/ents have not prove/ an1 of the instances that !oul/ invali/ate the Dee/ of Sale. Respon/ents even faile/ to establish that the consi/eration pai/ b1 the ven/ees for the Properties !as #rossl1 ina/e:uate. (s the trial court pointe/ out, the Dee/ of Sale stipulates that, in a//ition to the pa1&ent of P%,''', the ven/ees shoul/ assu&e the &ort#a#e loans fro& PN an/ D P. The consi/eration for the sale of the Properties !as thus P%,''' in cash an/ the assu&ption of the P%8,''' &ort#a#e. Respon/ents ar#ue that P%+,''' is still far belo! the actual value of the Properties. To bolster their clai&, respon/ents presente/ the follo!in#A 5%7 Ta> Declarations No. ()''%)''-'8 $. an/ ()''%) ''-'+$8 for the 1ear %-,-, !hich place/ the assesse/ value of the Properties at P,','"' an/ their appro>i&ate &ar2et value atP"..,"-'F an/ 5"7 a certifie/ cop1 of the Depart&ent of Finance3s Depart&ent Or/er No. +")-,$+ /ate/ + =une %--, an/ attache/ #ui/elines $, !hich establishe/ the ;onal value of the properties alon# Evan#elista Street atP%8,''' per s:uare &eter. The sub4ect Dee/ of Sale, ho!ever, !as e>ecute/ in %-,'. The valuation of the Properties in %-,or %--, is of little relevance to the issue of !hether P%+,''' !as a #rossl1 ina/e:uate price to pa1 for the Properties in %-,'. Certainl1, there is nothin# surprisin# in the sharp increase in the value of

the Properties nine or t!ent1)seven 1ears after the sale, particularl1 !hen !e consi/er that the Properties are locate/ in the Cit1 of 0a2ati. 0ore pertinent are Ta> Declarations No. %89%"$9 an/ No. %89%$,$- both issue/ in %-+,, presente/ b1 petitioners. These ta> /eclarations place/ the assesse/ value of both Properties at P%+,%+'. Co&pare/ to this, the price ofP%+,''' cannot be consi/ere/ #rossl1 ina/e:uate, &uch less so shoc2in# to the conscience.' as to 4ustif1 the settin# asi/e of the Dee/ of Sale. Respon/ents ne>t conten/ that the ven/ees /i/ not &a2e the &ort#a#e pa1&ents on the Properties. Respon/ents alle#e that the rents pai/ b1 the tenants leasin# portions of the Properties !ere sufficient to cover the &ort#a#e pa1&ents to D P an/ PN . (#ain, this ar#u&ent /oes not help respon/ents3 cause. (ssu&in# that the ven/ees faile/ to pa1 the full price state/ in the Dee/ of Sale, such partial failure !oul/ not ren/er the sale voi/. In Buenaventura v. Court of Appeals,.% the Court hel/A >>> If there is a &eetin# of the &in/s of the parties as to the price, 14* 7o'1.(71 o6 0(l* 50 =(l52, 2*0/51* the &anner of pa1&ent, or even the 3.*(74 o6 14(1 )(''*. o6 /(y)*'1. >>> It is not the act of pa1&ent of price that /eter&ines the vali/it1 of a contract of sale. Pa1&ent of the price has nothin# to /o !ith the perfection of the contract. Pa1&ent of the price #oes into the perfor&ance of the contract. Failure to pa1 the consi/eration is /ifferent fro& lac2 of consi/eration. The for&er results in a ri#ht to /e&an/ the fulfill&ent or cancellation of the obli#ation un/er an e>istin# vali/ contract !hile the latter prevents the e>istence of a vali/ contract. 5E&phasis supplie/.7 Neither !as it sho!n that the rentals fro& tenants !ere sufficient to cover the &ort#a#e pa1&ents. The parties to this case stipulate/ to onl1 one tenant, a certain Fe/erico 0. Puno, !ho suppose/l1 lease/ a roo& on the Properties for P$'' per &onth fro& %--" to %--..." This is har/l1 si#nificant, !hen !e consi/er that the &ort#a#e !as full1 pai/ b1 %-,.. In/ee/, the fact that the Properties !ere &ort#a#e/ to D P an/ PN in/icates that the con4u#al partnership, or at least 0auricio, !as short of fun/s. Petitioners point out that the1 !ere /ul1 e&plo1e/ an/ ha/ the financial capacit1 to bu1 the Properties in %-,'. Respon/ents /i/ not refute this. Petitioners presente/ ," receipts .$ sho!in# the &ort#a#e pa1&ents &a/e to PN an/ D P, an/ the Release of the Real Estate 0ort#a#e.. 560ort#a#e Release67 /ate/ 8 (pril %-,.. True, these /ocu&ents all bear 0auricio3s na&e. @o!ever, this ten/s to support, rather than /etract fro&, petitioner)ven/ees3 e>planation that the1 initiall1 #ave the &ort#a#e pa1&ents /irectl1 to 0auricio, an/ then later /irectl1 to the ban2s, !ithout for&all1 a/visin# the ban2 of the sale. The last $ &ort#a#e receipts an/ the 0ort#a#e Release !ere all issue/ in 0auricio3s na&e even after his /eath in %-,'. Obviousl1, 0auricio coul/ not have secure/ the 0ort#a#e Release an/ &a/e these last pa1&ents. Presumption of Re ularity and !urden of Proof The Dee/ of Sale !as notari;e/ an/, as certifie/ b1 the Re#ional Trial Court of 0anila, entere/ in the notarial boo2s sub&itte/ to that court. (s a /ocu&ent ac2no!le/#e/ before a notar1 public, the Dee/ of Sale en4o1s the presu&ption of re#ularit1 .8 an/ /ue e>ecution..+ (bsent evi/ence that is clear, convincin# an/ &ore than &erel1 prepon/erant, the presu&ption &ust be uphel/. .,

Respon/ents3 evi/ence in this case is not even prepon/erant. Respon/ents3 alle#ations, testi&on1 an/ bare /enials cannot prevail over the /ocu&entar1 evi/ence presente/ b1 petitioners. These /ocu&ents K the Dee/ of Sale an/ the *P( !hich are both notari;e/, the receipts, the 0ort#a#e Release an/ the %-+, ta> /eclarations over the Properties K support petitioners3 account of the sale. (s the parties challen#in# the re#ularit1 of the Dee/ of Sale an/ alle#in# its si&ulation, respon/ents ha/ the bur/en of provin# these char#es..9 Respon/ents faile/ to /ischar#e this bur/en. Conse:uentiall1, the Dee/ of Sale stan/s. On the Partition of the Property Nevertheless, this Court fin/s it proper to #rant the partition of the Properties, sub4ect to &o/ification. Petitioners have consistentl1 clai&e/ that their father is one of the ven/ees !ho bou#ht the Properties. Ven/ees Eli;abeth an/ Ofelia both testifie/ that the 6Rolan/ (. ravo6 in the Dee/ of Sale is their father,.- althou#h their brother, Rolan/ ravo, =r., &a/e so&e of the &ort#a#e pa1&ents. Petitioners3 counsel, (tt1. Pa##ao, &a/e the sa&e clarification before the trial court. 8' (s Rolan/ ravo, Sr. is also the father of respon/ent E/!ar/ ravo, E/!ar/ is thus a co&pulsor1 heir of Rolan/ ravo, an/ entitle/ to a share, alon# !ith his brothers an/ sisters, in his father3s portion of the Properties. In short, E/!ar/ an/ petitioners are co)o!ners of the Properties. (s such, E/!ar/ can ri#htfull1 as2 for the partition of the Properties. (n1 co)o!ner &a1 /e&an/ at an1 ti&e the partition of the co&&on propert1 unless a co)o!ner has repu/iate/ the co) o!nership.8% This action for partition /oes not prescribe an/ is not sub4ect to laches. 8" -!ERE%ORE, !e REVERSE the Decision of "% Dece&ber "''% of the Court of (ppeals in C() *.R. CV No. +,,-.. Be REINST(TE the Decision of %% 0a1 "''' of the Re#ional Trial Court of 0a2ati, ranch No. %$-, in Civil Case No. -,)%$,, /eclarin# V(<ID the Dee/ of Sale !ith (ssu&ption of 0ort#a#e /ate/ "9 October %-,', !ith the follo!in# 0ODIFIC(TIONSA %. Be *R(NT 4u/icial partition of the sub4ect Properties in the follo!in# &annerA a. Petitioner <I<G E<IH( ET@ R(VO)*CERRERO is entitle/ to one)thir/ 5%I$7 of the PropertiesF b. Petitioner OFE<I( R(VO)?CIEST(S is entitle/ to one)thir/ 5%I$7 of the PropertiesF an/ c. The re&ainin# one)thir/ 5%I$7 portion of the Properties shoul/ be /ivi/e/ e:uall1 bet!een the chil/ren of RO<(ND R(VO. ". The other heirs of RO<(ND R(VO &ust rei&burse RO<(ND R(VO, =R. for !hatever e>penses the latter incurre/ in pa1in# for an/ securin# the release of the &ort#a#e on the Properties. SO ORDERED. Davi/e, =r., C.=., 5Chair&an7, ?uisu&bin#, Gnares)Santia#o, an/ (;cuna, ==., concur.

%oo1'o1*0
%

(lso referre/ to in the recor/s as en4a&in ravo. Cn/er Rule .8 of the Rules of Civil Proce/ure.

"

Rollo, pp. $,')$9+. Penne/ b1 (ssociate =ustice ienveni/o <. Re1es !ith (ssociate =ustices 5no! Supre&e Court (ssociate =ustice7 Cancio C. *arcia an/ Roberto (. arrios concurrin#.
$ .

Ibid", pp. $"")$$-)(. Penne/ b1 =u/#e Florentino (. Tuason, =r.

(ppears in the lo!er courts3 /ecisions an/ in TCT Nos. 89--- an/ 8-''' as 6Se&ona.6 @o!ever, the la/1 herself si#ne/ her na&e as 6S5)o'( (n/a1a)/e ravo6 in the *P(. 6Si&ona (n/a1a6 is also the na&e of the survivin# spouse on 0auricio3s /eath certificate.
8 +

E>hibit 686 to 68)C6, Recor/s, pp. ",,)",9. The relevant portions of the *P( stateA

>>> That I, SI0ON( (ND(G( DE R(VO, of le#al a#e, &arrie/ to 0auricio ravo an/ a resi/ent of "%-. Evan#elista St., 0a2ati, Ri;al, Philippines, /o hereb1 appoint, na&e an/ constitute &1 husban/ 0auricio ravo, of le#al a#e, resi/in# at the sa&e a//ress, to be &1 true an/ la!ful attorne1 to act in, &ana#e, an/ con/uct all &1 affairs, an/ for that purpose in &1 na&e an/ on &1 behalf to /o an/ e>ecute all or an1 of the follo!in# acts, /ee/s an/ thin#s, to !itA %. To e>ercise #eneral control an/ supervision over &1 business an/ propert1 of ever1 2in/ in the Philippines, an/ to act as &1 #eneral representative an/ a#ent, !ith full authorit1 to bu1, sell, ne#otiate an/ contract for &e an/ in &1 behalf. >>> $. To bu1 or other!ise ac:uire, to hire or lease, an/ to ple/#e, &ort#a#e or other!ise h1pothecate, sell, assi#n an/ /ispose of an1 an/ all of &1 propert1, real, personal or &i>e/, of an1 2in/ !hatsoever an/ !heresoever situate/, or an1 interest therein, upon such ter&s an/ con/itions an/ un/er such covenants as &1 sai/ attorne1 shall /ee& fit an/ proper, an/ to e>ecute in &1 na&e an1 an/ all papers relatin# thereto, an/ to si#n, e>ecute, ac2no!le/#e an/ /eliver an1 an/ all a#ree&ents or other !ritin#s therefore, or in an1 !a1 connecte/ there!ith or !ith &1 business or propert1. >>>
,

E>hibits 6,6 an/ 696, ibid", pp. "9')"9%. E>hibit 6.6, ibid"# p. ",+. The Dee/ of Sale states in partA

LNOB (<< 0EN G T@ESE PRESENTSA That I, 0(CRICIO R(VO, of le#al a#e, Filipino, &arrie/ to SE0ON( (ND(G(, an/ resi/ent of 0a2ati, Ri;al, Philippines, for an/ in consi/eration of the a&ount of ONE

T@OCS(ND PESOS 5P%,'''.''7, Philippine Currenc1, an/ for other valuable consi/erations, receive/ fro& RO<(ND (. R(VO, OFE<I( (. R(VO an/ E<IH( ET@ R(VO, li2e!ise of le#al a#e, Filipinos, sin#le an/ resi/ents of 0a2ati, Ri;al, Philippines, to &1 entire satisfaction, /o b1 these presents CEDE, SE<<, TR(NSFER an/ CONVEG unto sai/ RO<(ND (. R(VO, OFE<I( (. R(VO an/ E<IH( ET@ R(VO, all &1 title, ri#hts an/ interests to t!o parcels of lan/, &ore particularl1 /escribe/ as follo!sA T.C.T. No. 89-->>> T.C.T. No. 8-''9 5sic7 >>> >>> The con/ition of this sale is that the ven/ees RO<(ND (. R(VO, OFE<I( (. R(VO an/ E<IH( ET@ R(VO !ill assu&e the &orta#e /ebt pertaoinin# 5sic7 to sai/ parcels of lan/s !ith the Philippine National an2 an/ Develop&ent an2 of the Philippines. >>> Note that the Dee/ of Sale &ista2enl1 refers to T.C.T. No. 8-'' 8F the title over the secon/ lot is actuall1 T.C.T. No. 8-''0. @o!ever, the propert1 /escription :uote/ un/er 6T.C.T. No. 8-''96 is i/entical to the /escription of the propert1 un/er T.C.T. No. 8-'''. No one /isputes that 6T.C.T. 8-''96 actuall1 pertains to T.C.T. No. 8-''' an/ both parties have treate/ this as a &ere t1po#raphical error.
-

E>hibit 6+6, Recor/s, p. ",-. Recor/s, p. "'$. Rollo, p. $$-)(. Ibid", p. $98. Ibid"# p. ..$. Ibid", p. 8"'. Chan#co v. Court of (ppeals, ."- Phil. $$+ 5"''"7. <ara, et al. v. Del Rosario, =r. -. Phil. ,,9 5%-8.7.

%'

%%

%"

%$

%.

%8

%+

The parties an/ the lo!er courts procee/e/ on the assu&ption that the Properties !ere ac:uire/ after $' (u#ust %-8' because TCT Nos. 89--- an/ 8-''' !ere in/ee/ issue/ to 0auricio an/ Si&ona on "$ 0a1 %-89. @o!ever, 0auricio an/ Si&ona3s con4u#al partnership be#an lon# before. 1 Borl/ Bar II, at least one of their chil/ren, <il1 ravo Dia;, !as &arrie/ an/ !ith chil/.
%,

%9

See Isabela Colle#es, Inc. v. @eirs of Nieves Tolentino)Rivera, $-, Phil. -88 5"'''7.

Vera Cru; v. Cal/eron, *.R. No. %+',.9, %. =ul1 "''., .$. SCR( 8$.F @eirs of I#nacia (#uilar)Re1es v. 0i4ares, *.R. No. %.$9"+, "9 (u#ust "''$, .%' SCR( -,F @eirs of Christina (1uste v. Court of (ppeals, $," Phil. $,' 5%---7. Note that un/er the &ore recent (rticle %". of the Fa&il1 Co/e, the sale of con4u#al partnership propert1 !ithout spousal consent is consi/ere/ voi/.
%-

0aestra/o v. Court of (ppeals, $9. Phil. .%9 5"'''7F <o1ola v. Court of (ppeals, $9$ Phil. %,% 5"'''7.
"' "%

TSN, %8 Septe&ber %---, pp. +%)+". Davi/ =r. testifie/ as follo!sA

(tt1. Pa##aoA ?A Do 1ou 2no! !hen 1our #ran/parent, 1our #ran/father 0auricio /ie/M BitnessA (A Ges, sir. (tt1. Pa##aoA ?A BhenM BitnessA (A Nove&ber "', %-,$, sir. (tt1. Pa##aoA ?A (n/ after %-,$, !as it not a fact that 1ou an/ 1our #ran/&other Se&ona still /i/ not #o bac2 to 0a2ati an/ continue/ to rent in Pasi# Cit1M Bitness (A Ges, sir.
""

<i& Pin v. <iao Tan, et al., "'' Phil. +98 5%-9"7. Ibid. *.R. No. %'",$,, "% (u#ust %--+, "+' SCR( 8-$. E>hibit 686 to 68)C6, Recor/s, pp. ",,)",9. uenaventura v. Court of (ppeals, *.R. No. %"+$,+, "' Nove&ber "''$, .%+ SCR( "+$. Civil Co/e, (rticle %'+%.

"$

".

"8

"+

",

"9

Ra&os v. @eirs of @onorio Ra&os, Sr., .$% Phil. $$, 5"''"7. Civil Co/e# (rticles %$8" an/ %.'-. Supra note "+. <o1ola v. Court of (ppeals, $9$ Phil. %,% 5"'''7. Civil Co/e, (rticle %.,'. Ibid"# (rticle %$88. E>hibit 6C6, recor/s, p. "$'. E>hibit 6D6, ibid", p. "$%. E>hibit 6E6, ibid", p. ".". E>hibit 6F6 to 6F)96, ibid"# pp. ".$)"8%. E>hibit 6%%6, ibid", p. $'9. E>hibit 6%%)a6, ibid", p. $'-. Rosales v. Court of (ppeals, *.R. No. %$,8++, "9 Februar1 "''%, $8$ SCR( %,-. Supra note "+. Recor/s, p. $.'. E>hibits 6-6 to 6-)ppp6 an/ 6%'6 to 6%')&6, ibid., pp. "9$)$',. E>hibit 6%"6, ibid", p. $%'. <lana v. Court of (ppeals, .%$ Phil. $"- 5"''%7. ernar/o v. Court of (ppeals, $9, Phil. ,$+ 5"'''7. <lana v. Court of (ppeals, supra note .8. Supra# note "9. TSN, , Dece&ber %---, p. "'. Eli;abeth testifie/ thatA

"-

$'

$%

$"

$$

$.

$8

$+

$,

$9

$-

.'

.%

."

.$

..

.8

.+

.,

.9

.-

(tt1. Pa##ao ?A Bhat about this Rolan/ (. ravo, !ho is that personM Bitness

(A That is our father. TSN, 9 Februar1 "''', pp. "-)$'. Ofelia testifie/ thatA CourtA 0s. Ofelia ravo, there3s DaE Rolan/ ravo here, in the Dee/ of Sale in 5sic7 assu&ption of &ort#a#e, !ho is this Rolan/ ravo, is he Rolan/ ravo, Sr., or =r.M Bitness (A That is Sr., Gour @onor. >>> (tt1. Cen/aJaA So the ven/ee is 1our father, an/ also, t!o 5sic7 of 1our sisters, <il1M Bitness (A Ges, sir.
8'

TSN, %8 Septe&ber %---, pp. .-)8%. De *uia v. Court of (ppeals, *.R. No. %"'9+., 9 October "''$, .%$ SCR( %%.. Ibid.

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