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NHA vs Almeida

Facts:

Land Tenure Administration (LTA) awarded to Margarita Herrera several portions of land with her
children as her heirs. The first child, Beatriz Herrera-Mercado, predeceased her mother and left heirs.
When the mother passes away, the remaining child, Francisca Herrera, filed Deed of Self-Adjudication
claiming to be the exclusive and remaining heir of the deceased, which was based on a Sinumpaang
Salaysay of the latter.

The heirs of the first child filed an annulment of the Deed of Self-Adjudication which was declared null
and void by the Court of First Instance. On the other hand, the alive child of Herrera filed an application
with National Housing Authority (NHA) to purchase the same lots which was granted by the same. This
was affirmed by the Office of the President. When Francisca Herrera died, her heirs executed an
extrajudicial settlement of her estate, approved by NHA and directed the heir of Beatriz Herrera-
Mercado the leave the property.

In RTC, they raised that the Deed of Self-Adjudication was declared of nullity since the other heirs were
disregarded. The heirs of Francisca Herrera countered that the transfer of the purchase of the subject
lots was valid since there was consideration paid. RTC set aside the decision of NHA and Office of the
President, declaring the Deeds of Sale to be null and void. This was affirmed by CA.

Issue:

(1) Was NHA correct in its resolution in granting the application of the purchase of lots by Francisca
Herrera?

Ruling:

NO. The Sinumpaang Salaysay of Margarita Herrera was in fact a will which effectivity commences at her
time of death which means that all her interests as a person should cease to be to hers and shall be in
the possession of her estate until transferred to the heirs by virtue of Art. 774:
Succession is a mode of acquisition by virtue of which property, rights and obligations to the extent of the
value of the inheritance, of a person are transmitted through his death to another or others either by his
will or by operation of law.

Margarita Herrera is under a contract to sell with NHA such that upon her death, this obligation
does not cease since it is transmissible either by will or by operation of law. NHA cannot make
another contract to sell to other parties since the property was already initially paid for by the
decedent. What NHA should have done was to consider the estate of the decedent as the next
person to fulfill the obligation to pay the remaining purchase price. NHA should have been alert
to note that there are other heirs to the interests and properties of the decedent who may
claim the property after testate or intestate proceedings.