Professional Documents
Culture Documents
It has been held that section 48: a certificate of title, Morris Carpo filed a complaint with the Court of
once registered, should not thereafter be impugned, First Instance, presided over by Judge Rizalina
altered, changed, modified, enlarged or diminished Bonifacio Vera (Vera Court), for "declaration of
nullity of Decree No. N-63394 and TCT No. 20408."
except in a direct proceeding permitted by law. Both
Named defendants were Realty Sales Enterprise,
actions made by petitioners and respondents are not
Inc., Macondray Farms, Inc. and the Commissioner
a direct attack but constitutes a collateral attack. of Land Registration. Carpo withdrew his complaint
Certificate of title are indefeasible, unassailable and as against the last named defendant, and the answer
binding against the whole world including the filed on behalf of said government official was
government, they do not create or vest title. They ordered stricken off the record. The complaint
merely confirm or record title already existing and alleged that TCT No. 20408 as well as OCT No. 1609
from which it was derived, is a nullity as the CFI,
vested. They cannot be used to protect the usurper
then presided over by Judge Andres Reyes (Reyes
from the true owner. Certificate is not conclusive
Court) which issued the order directing the issuance
evidence of title. of a decree of registration, was not sitting as a land
registration court, but as a court of ordinary
jurisdiction. It was further alleged that the original
records of LRC Case No. 657, GLRO Record No.
CASE No. 6
29882 which was the basis for the issuance of said
REALTY SALES ENTERPRISE, INC. vs. order, were lost and/or destroyed during World
War II and were still pending reconstitution; hence,
INTERMEDIATE APPELLATE COURT
the Reyes Court had no authority to order the
154 SCRA 328, G.R. No. L-67451 issuance of a certificate of title.
28 September 1987
Realty and Macondray alleged in their answer that
the Reyes Court was acting as a court of land
registration and in issuing the order of May 21, 1958,
Facts was actually performing a purely ministerial duty
for the registration court and which on August 19,
1) TCT No. 20408 issued on May 29, 1975 in the 1935 had rendered a decision adjudicating the two
name of Realty Sales Enterprise, Inc., which was (2) lots in question to Estanislao Mayuga,
derived from OCT No. 1609, issued on May 21, 1958, predecessor-in-interest of Realty and Macondray,
pursuant to Decree No. N-63394 in LRC Cases Nos. which decision was upheld by the Court of Appeals.
657, 758 and 976, GLRO Record Nos. N-29882, N- It was alleged that it is the title of Carpo which is
33721 and N-43516, respectively. null and void, having been issued over a parcel of
land previously registered under the Torrens
2) TCT No. 303961 issued on October 13, 1970 in the System in favor of another.
name of Morris G. Carpo, which was derived from
OCT No. 8629, issued on October 13, 1970 pursuant Realty and Macondray filed a third-party complaint
to decree No. N-131349 in LRC Case No. N-11-M against the Quezon City Development and
(N-6217), GLRO Record No. N-32166. Financing Corporation (QCDFC) and the
Commissioner of Land Registration alleging that
3) TCTs Nos. 333982 and 333985, issued on July 27, TCTs Nos. 333982 and 333985 in the name of
1971 in the name of Quezon City Development and QCDFC also covered the same parcels of land
Financing Corporation, derived from OCT No. 8931 subject of the dispute between Carpo and the two
corporations, Realty and Macondray and thus they itself without authority to act on a civil case in view
prayed that the same be declared null and void. of the allocation of cases to the different divisions of
the IAC under Section 8 of BP 129. The case was
In its answer to the third-party complaint, QCDFC then assigned to the Third Civil Cases Division,
asserted the validity of its own title alleging that it is composed of Justices de la Fuente, Coquia, Zosa and
the title in the name of Realty which is null and Bartolome.
void. QCDFC also filed a fourth-party complaint
against Carmelino Alvendia, Esperanza Alvendia, The IAC promulgated its Resolution granting
Felicisimo Alvendia, Josefina Alvendia, Jacinto G. Carpo's motion for reconsideration, reversing and
Miranda, Rosa G. Miranda, Isabel G. Miranda, and setting aside the decision of the Court of Appeals,
Feliciano G. Miranda, alleging that it bought said and affirming the decision of the trial court.
parcels of land from them. It prayed that in the
event of an unfavorable judgment against it, fourth- Hence, this petition.
party defendants be ordered to reimburse the
purchase price which the corporation paid to them.
However, QCDFC failed to prosecute its case, and Issue
the fourth-party complaint was dismissed for lack of
interest. Whether or not Morris G. Carpo is a purchaser in
good faith and for value when there is absolutely no
The Vera Court rendered judgment, sustaining the evidence, whether written or testimonial, that was
title of Morris G. Carpo to the two (2) lots in presented by Carpo, or by anyone else that he was,
question and declaring the titles of Realty Sales in fact, a purchaser for value and in good faith — a
Enterprise, Inc. and QCDFC null and void. material matter which was neither alleged nor
referred to in the complaint and in all the pleadings,
Realty filed a Petition for certiorari with this Court nor covered by any of the exhibits presented by all
questioning the decision of the lower court. It also of the parties herein and solely on the bases of
asked that it be allowed to appear directly to this which the case at bar was submitted by the parties
Court as it was raising only questions of law. After for consideration and decision.
respondents filed their comments to said petition,
this Court passed a resolution referring the case to
the Court of Appeals "in aid of its appellate Held/Ruling
jurisdiction for proper determination on the merits
of the appeal." Where two or more certificates cover the same
land, the earlier in date prevails
The Court of Appeals set aside the decision of the
trial court and rendered a new one upholding the Whether or not Carpo is an innocent purchaser for
validity of the title in the name of Realty Sales value was never raised as an issue in the trial court.
Enterprise, Inc. and declaring null and void the titles A perusal of the records of the case reveals that no
in the name of Carpo and QCDFC. factual basis exists to support such a conclusion.
Even Carpo himself cites no factual proof of his
Carpo filed a motion for reconsideration with the being an innocent purchaser for value. He merely
appellate court. In the meantime, the Court of relies on the presumption of good faith under
Appeals was reorganized into the Intermediate Article 527 of the Civil Code.
Appellate Court (IAC). As a consequence, there was
a re-raffling of cases and the case was assigned to It is settled that one is considered an innocent
the Second Special Cases Division which, however, purchaser for value only if, relying on the certificate
returned the records of the case for another re- of title, he bought the property from the registered
raffling to the Civil Cases Divisions as it deemed owner, "without notice that some other person has a
right to, or interest in, such property and pays a full purporting to include the same land, the earlier in
and fair price for the same, at the time of such date prevails . . . . In successive registrations, where
purchase, or before he has notice of the claim or more than one certificate is issued in respect of a
interest of some other persons in the property." He particular estate or interest in land, the person
is not required to explore farther than what the claiming under the prior certificate is entitled to the
Torrens title upon its face indicates. estate or interest; and that person is deemed to hold
under the prior certificate who is the holder of, or
Carpo bought the disputed property from the whose claim is derived directly or indirectly from
Baltazars, the original registered owners, by virtue the person who was the holder of the earliest
of a deed executed before Iluminada Figueroa, certificate issued in respect thereof . . . ."
Notary Public of Manila dated October 9, 1970.
However, it was only later, on October 13, 1970, that TCT No. 20408 (issued in the name of Realty Sales
the decree of registration in favor of the Baltazars Enterprise, Inc.) derived from OCT 1609, is therefore
was transcribed in the Registration Book and that an superior to TCT No. 303961 (issued in the name of
Original Certificate of Title was issued. It was on the Morris G. Carpo) derived from OCT 8629.
same day, October 13, 1970, that the deed
evidencing the sale between the Baltazars and QCDFC derived its title from Carmelino Alvendia
Carpo was inscribed in the Registry of Property, and et. al., the original registered owners. Original
the Original Certificate of Title was cancelled as Certificate of Title No. 8931 in the name of Spouses
Transfer Certificate of Title No. 303961 in the name Carmelino Alvendia, et. al. was issued on July 27,
of Carpo was issued. 1971, or thirteen (13) years after the issuance of
Mayuga's title in 1958.
Thus, at the time of sale there was as yet no Torrens
title which Carpo could have relied upon so that he Since Realty is claiming under TCT No. 1609 which
may qualify as an innocent purchaser for value. Not was issued earlier than OCT No. 8931 from which
being a purchaser for value and in good faith, he is QCDFC's title was derived, Realty's title must
in no better position than his predecessors-in- prevail over that of QCDFC.
interest.
Issue: After the NLTDRA was notified the case was set for
hearing on December 7, 1987, the Acting Chief,
Whether or not Gregorio Bontuyan acted in Docket Division of the NLRDRA submitted another
bad faith when he applied for free patent for the report recommending that petitioner be ordered to
same parcels of land. refer to the Bureau of Lands for corrections of the
discrepancy existing in the directional bearing and
area of the said lots. The technical descriptions as
corrected by the Bureau of Lands was submitted
Ruling:
and the application was initially set for hearing on
Yes, record show that at the time when April 26, 1988.
Gregorio applied for free patent, he was living with
his daughter, Vivencia. Thus, Gregorio must have On June 1, 1988, an order of general default was
issued by respondent Court. Exempted from the
known that at the time when he applied, the subject
lots were already sold by his daughter. order was one Annie Jimenez who filed an
Furthermore, records also show that he sold twice opposition to the application. On June 22, 1988,
private respondent Solid Homes, Inc. filed its
the lot no 17,150 to plaintiff appellants. The first was
in 1976 and the other was in 1980. Plaintiff- opposition stating that a land registered in its name
appellants offered no reasonable explanation why under the Torrens System and covered by then TCT
Gregorio have to sell it twice. These are badges of No. N-7873 is almost identical to the property
subject of the application by petitioner. The
bad faith which affect the validity of the title of
opposition was not admitted considering that no
Gregorio over the subject lots.
motion to set aside the order of general default was
filed by private respondent.
Considering that Lourdes Leyson was in On June 28, 1988, private respondent filed a motion
actual possession of the property, the respondents to lift the order of general default and to admit its
cannot claim that they were in good faith when opposition on the ground that its right would be
Gregorio allegedly sold the property to them. adversely affected by the application. In the same
order dated July 1, 1988, respondent Court set aside
JUAN C. CARVAJAL, petitioner, vs. COURT OF the order of general default in so far as private
APPEALS and SOLID HOMES, INC., respondents. respondent was concerned and admitted private
respondent’s opposition.
FACTS:
On January 10, 1989, petitioner filed a motion “1. Whether or not an actual ground verification
praying that the opposition of private respondent be survey is required to establish the identity of the
dismissed for the reason that the order issued by two parcels of land.
respondent court directing the NLRTDA [sic] to
make a plotting of the land in question on the basis HELD:
of the title submitted by the Registry of Deeds of At the outset, we stress that there was nothing
Marikina Branch Manila released the private irregular in the order given by the trial court to the
respondent from the duty and obligation of Land Registration Authority and the Survey
presenting evidence to prove that the land applied Division of the DENR to submit reports on the
for is private and that there is apparent lack of location of the land covered by petitioner’s
interest on the part of private respondent to pursue application and private respondent’s certificate of
its claim on account of its non-appearance despite title. The authority of the land registration court to
the lapse of more than six months or to introduce require the filing of additional papers to aid it in its
evidence that will show that the land in question is determination of the propriety of the application
covered by the alleged torrens certificate of title. was based on Section 21 of PD 1529:
During the hearings petitioner presented his “SEC. 21. Requirement of additional facts and
evidence on the question as to whether or not he papers; ocular inspection. -- The court may require
had a registrable right over the land in question. facts to be stated in the application in addition to
Pursuant to the court order dated July 1, 1988 those prescribed by this Decree not inconsistent
directing the NLTDRA to make the plotting of the therewith and may require the filing of any
relative position of the property, the Land additional papers. It may also conduct an ocular
Registration Authority submitted a report dated inspection, if necessary.”
December 22, 1986 [should be 1988] recommending Based on the reports submitted, the land registration
that, after due hearing, the application for court correctly dismissed the application for original
registration of petitioner be dismissed. The land registration. An application for registration of
application was thus dismissed. Petitioner filed his an already titled land constitutes a collateral attack
motion to reconsider. The motion for on the existing title
reconsideration was denied in an order dated March
4, 1989. Contrary to petitioner’s contention, the approval by
the assistant chief of the Bureau of Lands Survey
On May 2, 1989 petitioner filed a second motion to Division of the survey conducted on the land
reconsider the dismissal of his petition. applied for by petitioner did not prove that the said
After the Land Registration Authority submitted a land was not covered by any title. It merely showed
report showing that there was indeed an that such land has been surveyed and its boundaries
overlapping of the four (4) parcels of land applied have been determined.
for by petitioner and the properties of Solid Homes Petitioner also argues that the plotting made by
under TCT 7873 and considering that the properties NLTDRA was “anomalous” because Survey Plan
applied for are [sic] within the titled property and FP-1540, on which private respondent’s title was
could not be the subject of an application for based, could not be located. This argument lacks
registration, the second motion to reconsider the merit. The law does not require resorting to a
dismissal of the application for registration was survey plan to prove the true boundaries of a land
denied. covered by a valid certificate of title; the title itself
The Court of Appeals affirmed the dismissal of the is the conclusive proof of the realty’s metes and
application for registration bounds. Section 47 of the Land Registration Act,
or Act No. 496, provides that “(t)he original
ISSUE: certificates in the registration book, any copy
thereof duly certified under the signature of the
clerk, or of the register of deeds of the province or
city where the land is situated, and the seal of the
court, and also the owner’s duplicate certificate,
shall be received as evidence in all the courts of
the Philippine Islands and shall be conclusive
as to all matters contained therein except so far as
otherwise provided in this Act.” It has been held
that a certificate of title is conclusive evidence
with respect to the ownership of the land
described therein and other matters which can be
litigated and decided in land registration
proceedings.