PINEDA v.

CA
WHO MAY BRING ACTION FOR DECLARATION OF NULLITY

376 SCRA 222. February 6, 2002

FACTS: The appellees and the petitioner, Pineda, executed an Agreement to Exchange Real Properties. The
appellees exchanging their property at White Plains with that of the Pinedas located in California. At the time
of the execution of the agreement, the White Plains property was mortgaged with the GSIS, while the California
property also had a mortgaged obligation. As stated in the exchange agreement, Pineda paid the appellees the
total amount of $12, 000. Pineda and the spouses Duque executed an agreement to sell over the White Plains
property, whereby Pineda sold the property in the amount of P1.6M. Pineda paid the mortgage of the White
Plains property and requested the appellees for a written authority for the release of the title from GSIS. The
appellees gave Pineda the authority with the understanding that Pineda will deliver the title to the appellees.
Upon their return to the Philippines, the appellees discovered that the spouses Duque were occupying the
White Plains property and a fictitious deed of sale in the name of Pineda.

In a civil case filed by the appellees, the trial court declared them as the absolute owners of the property located
in White Plains.

ISSUE: Whether or not the Deed of Sale is void.

RULING: The Court denies the petition. It appears that the Bañez spouses were the original owners of the
parcel of land and improvements located at White Plains, Quezon City. On January 11, 1983, the Bañez spouses
and petitioner Pineda executed an agreement to exchange real properties. However, the exchange did not
materialize. Petitioner Pineda’s "sale" of the property to petitioners Duque was not authorized by the real
owners of the land, respondent Bañez. The Civil Code provides that in a sale of a parcel of land or any interest
therein made through an agent, a special power of attorney is essential. This authority must be in writing;
otherwise the sale shall be void. In his testimony, petitioner Adeodato Duque confirmed that at the time he
"purchased" respondents’ property from Pineda, the latter had no Special Power of Authority to sell the
property. A special power of attorney is necessary to enter into any contract by which the ownership of an
immovable is transmitted or acquired for a valuable consideration. Without an authority in writing, petitioner
Pineda could not validly sell the subject property to petitioners Duque. Hence, any "sale" in favor of petitioners
Duque is void.