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Rely previously owned a property located in Sindalan, City of San Fernando Pampanga and covered by

TCT No. 123456. Belen claims that Rely sold to her 10, 848 square-meter of the said property as
evidenced by a Deed of Absolute Sale dated February 25, 1964.

When Rely died in 1996, her heirs executed an Extrajudicial Settlement of Estate adjudicating the land in
their favor, and as a result of which, TCT No. 123456 was cancelled and TCT No. 7891011 was issued in
April 5, 1997 in their names. Belen now demands from the heirs of Rely to segregate and transfer the
portion she bought to her but her demands went unheeded.

Belen was not able to registered the land she bought under the Torrens System. She also was not able to
have the Deed of Absolute Sale annotated at the back of TCT No. 123456. On the other hand, the heirs
of Rely was able to register the land in good faith.

Article 1544 applicable in this case? Discuss. Cite your basis and reference.

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