EUFEMIA BALATICO VDA.

DE AGATEP
VS.
ROBERTA L. RODRIGUEZ AND NATALIA
AGUINALDO VDA. DE LIM
G.R. No. 170540
October 28, 2009
Peralta, J.
 Property in Lasam, Cagayan owned by Lim covered by
FACTS: TCT No. T-10759

April 1983
April 1993
July 1975 Lim failed to pay.
PNB sold land to
Lim mortgaged lot to PNB Property foreclosed.
Rodriguez thru bidding.
Duly annotated PNB as highest bidder.

August 1976 November 1985 Case for Reconveyance

Lim sold lot to Agatep Lim failed to redeem within 1 year. and/or Damages was
Unregistered sale Ownership consolidated to PNB. filed by Agatep.

RTC dismissed.
CA affirmed RTC.
ISSUES AND RULING OF THE COURT:
• PNB is a mortgagee/buyer/seller in good faith
• The public interest in upholding the indefeasibility of a certificate of title, as
evidence of the lawful ownership of the land or of any encumbrance thereon,
protects a buyer or mortgagee who, in good faith, relies upon what appears on
the face of the certificate of title.
• PNB acquired ownership over the property in question
• A buyer in a foreclosure sale becomes the absolute owner of the property
purchased if it is not redeemed during the period of one year after the
registration of the sale.
• Sale to Agatep does not defeat the mortgage previously executed by
Lim in favor of PNB
• All subsequent purchasers must respect the mortgage whether the transfer to
them be with or without the consent of the mortgagee, for such mortgage until
discharged follows the property