signature of Marciano was ACTIONS FOR

forged which was RECONVEYANCE

confirmed by the latter
during the pre-trial. CASE 1 : REYES VS.
MONTEMAYOR
4. However, Montemayor G.R. NO. 166516 September
insist that she has a 3, 2009
better right being the first
registrant of the Sale and
she was in good faith. FACTS :
5. Thus, RTC rendered its 1. ( SPOUSES ) Sps. Reyes’ (
decision in favor of EMMA AND RAMON )
Montemayor and was bought the disputed land
affirmed by the CA. from Cuevas as
6. 1997 : the case in the CA evidenced by (1) Deed of
WAS FILED Absolute Sale, (2)
7. 1998: a new TCT was Owner’s Duplicate Copy
issued to Engracia ( new and (3) paid taxes,
person ) by virtue of a however, the former
quit claim made by unable to register the sale
montemayor. and effect the transfer of
8. Note, that they obtained certificate of title to their
the property while there names.
was a case and also 2. In 1993, the Sps. Went to
Montemayor stated that the RD where they were
the TCT was fraudulently informed therein that the
obtained. subject property was sold
1. So the alleged false TCT made
by Montemayor, was cannclled
by Marciano to
and a new one given to Montemayor and a TCT
Engracia. was issued in latter’s
9. Pursuant to the said name.
decision of the RTC and 3. In the RTC, Sps. Reyes
the CA, the case was averred that Montemayor
elevated to the SC acquired the TCT thru
through petition for fraud as it was simulated
review on certiorari. and fictitious and that the
 vest in him or her the title
to the property.
- A certificate of title merely
confirms or records title
already existing and
vested.
- The indefeasibility of the
Torrens title should not be
used as a means to
perpetrate fraud against
the rightful owner of real
property. Good faith must
concur with registration
because, otherwise,
registration would be an
exercise in futility. A Torrens
title does not furnish a
shield for fraud,
notwithstanding the long-
standing rule that
registration is a Montemayor.
constructive notice of title
binding upon the whole
world.
- The legal principle is that if
the registration of the land
is fraudulent, the person in
whose name the land is
registered holds it as a
mere trustee.
2. What is the remedy for a
victim of fraudulent
registration ?
- iT HAS LONg BEEN
ESTABLISHED THAT the
remedy of a land owner
whose property has been
ISSUES /RULING :
1. Whether or not
Montemayor has a better
right over the property
considering that she was the
first registrant of the sale.
- No. Montemayor’s
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
As a
consequence, the rules on
double sale are irrelevant.
The court the proceeds to
rule on consequence of
Montemayor’s fraudulent
registration of the subject
property in her name and
declared that a forged deed
is a nullity and conveys no
title.
- . Insofar as a person who
fraudulently obtained a
property is concerned, the
registration of the property
in said person’s name
would not be sufficient to
 wrongfully or erroneously
registered in another’s
3. WON the engracias can name is to bring an
be considered innocent ordinary action in an
3rd persons, so as to not ordinary court of justice
allow the recovevance for reconveyance or, if
because it will prejudice the property has passed
the 3rd party ? into the hands of an
innocent purchaser for
value, for damages.
- NO THEY ARE NOT, - “ is one thing to protect an
Engracia's heirs cannot be innocent third party; it is
considered "innocent" entirely a different matter
persons or persons who and one devoid of
acquired the subject justification if deceit would
property "for value". be rewarded by allowing
Engracia's heirs "re- the perpetrator to enjoy
acquired" the subject the fruits of his nefarious
property by virtue of the deed.”
Montemayor 's Waiver and - Reconveyance is all about
Quitclaim dated 15 January the transfer of the
1998. property, in this case the
title thereto, which has
- That the said document been wrongfully or
was executed by erroneously registered in
Montemayor , who another person’s name, to
admitted to holding a its rightful and legal owner,
dubious title to the subject or to one with a better
property, should be right.
su�efficient to put - Evidently, petitioners,
Engracia's heirs on notice being the rightful owners of
and to cause the latter to the subject property, are
investigate the other entitled to the
transfers and titles issued reconveyance of the title
for the subject property. over the same.

NOTES :
1. Since Montemayor ’s
fraudulent registration of
the subject property in her
name violated petitioners’
right to remain in peaceful
possession of the subject
property, petitioners are
entitled to nominal
damages under Article
2221 of the Civil Code.
2. This having been said, an
action for reconveyance is
an action in personam
available to a person
whose property has been
wrongfully registered
under the Torrens system
in another's name.
Reconveyance is always
available as long as the
property has not passed to
an innocent person for
value.
3.
- The Waiver and Quitclaim
dated 15 January 1998
also does not establish
that the subject property
was transferred to
Engracia's heirs for value,
it appearing to have been
executed by Montemayor
in favor of Engracia's heirs
without any consideration
at all. Hence, the
cancellation of TCT No. T-
369793 in Montemayor 's
name and the issuance of
TCT No. T-784707 in the
names of Engracia's heirs
cannot bar the
reconveyance of the
subject property to
petitioners.
3. WON the law on double
sale applies ?
NO, The spouses Cuevas
only sold the subject
property to them in 1976,
and did not sell it a second
time to Montemayor in
1992. As a consequence, the
rules on the double sale of
registered property are not
relevant herein. Emma Ver
Reyes and Ramon Reyes
vs. The Register of Deeds of
Cavite, et al