Casimiro Development Corp. v.

Mateo
G.R. No. 175485, 24 July 2011

Facts:
The registered parcel of land was originally owned by Isaias Lara, respondents’ maternal
grandfather, which was passed on to his children. The co-heirs effected the transfer of the full
and exclusive ownership to Felicidad Lara-Mateo. A deed of sale was executed in favor of Laura,
one of Felicidad’s children, who applied for land registration, then OCT was thereafter issued.

The property was used as collateral to secure a succession of loans, eventually a TCT of which
was issued in the name of China Bank. Casimiro Development Corp. thereafter purchased the
property from CB. Thereafter CDC brought action for unlawful detainer in the MeTC against
the sons of Felicidad. The latter claimed that MeTC did not have jurisdiction over the land
because it was classified as agricultural, and has been in their continuous possession.

Issue:
Whether or not CDC was an innocent purchaser for value.

Ruling:
Yes. CDC was an innocent purchaser for value. Considering that China Bank’s TCT was clean
title, that is, it was free from any lien or encumbrance, CDC had the right to rely, when it
purchased the property, solely upon the face of the certificate of title in the name of China
Bank.

The property has already been placed under the Torrens system of land registration before CDC
became the registered owner by purchase from China Bank; OCT has already been issued to
attest to the fact that the person named in the certificate is the owner of the property therein
described, subject to liens and encumbrances as thereon noted or what the law warrants or
reserves. Neither the respondent nor his siblings opposed the transactions causing various
transfers, and even acknowledged the registration of the land under the name of Laura.
Evidently, the respondents, occupying the land, had no adverse possession over it.