Download - Spouses Bulaong v. Gonzales Full Text
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Republic of the Philippines
Supreme Court
Manila
SECOND DIVISION
SPOUSES ANSELMO[! "n#
PRISCILLA $ULAON%&
Petitioners,
- versus -
VERONICA %ON'ALES&
Respondent.
%(R( No( )*+,
Present:
CARPIO , J., Chairperson,
BRION,
PEREZ,
MENDOZA,* and
ERENO, JJ .Pro!ul"ated:
epte!#er $, %&''
(---------------------------------------------------------------------------------------------------------(
D E C I S I O N
$RION& J (-
Petitioners Ansel!o Bulaon" and Pris)illa Bulaon" )olle)tivel re+erred to
as te Bulaongssee, trou" teir petition +or revie on certiorari, te reversal o+
te de)ision/%0 o+ te Court o+ Appeals 1CA2 dated 3ul 4', %&&% in CA-5.R. P No.
$$6%4 and te su#se7uent resolution o+ Nove!#er %8, %&&%/40 reiteratin" tis
de)ision. 9ese CA rulin"s reversed and set aside te de)ision/60 o+ te Re"ional
9rial Court 1 RTC 2 o+ Malolos, Bula)an, Bran) '%, tat ordered te )an)ellation o+
9rans+er Certi+i)ate o+ 9itle 1TCT 2 No. 9-%&&% and 9C9 No. 9-%&&4.
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.AC/UAL AN/ECEDEN/S
9is )ase tra)es its roots to te )on+li)tin" )lai!s o+ to sets o+ parties over to
par)els o+ land.9e +irst par)el o+ land, it an area o+ %48 s7uare !eters and
)overed # 9C9 No. 9-%6;4;,/$0as ori"inall re"istered in te na!e o+
s7uare !eters and )overed # 9C9 No. 9-%6;6',/80 as ori"inall re"istered in te
na!es o+ Pa)i+i)a E. =i!po, !arried to Ni)anor C. in)ion)o, and 0
9ese par)els o+ land ere !ort"a"ed # te dau"ter o+
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A+ter te e(e)ution o+ te !ort"a"e, te Bulaon"s on)e a"ain ent to te O++i)e o+
te Re"ister o+ Deeds o+ Bula)an to re"ister and annotate te !ort"a"e on te
titles. 9e learned ten tat te Re"ister o+ Deeds )opies o+ te to titles ere
a!on" te re)ords tat ere #urned in te +ire tat destroed te entire o++i)e o+
te Re"ister o+ Deeds o+ Bula)an on Mar) 8, ';>8. Att. Elenita Corpus
)onvin)ed te! to )ause te re)onstitution o+ te ori"inals o+ te titles, and +urter
assured te! tat te !ort"a"e over te properties ould #e prote)ted sin)e a )op
o+ te Deed o+ Mort"a"e ad alread #een "iven to er o++i)e +or annotation./'%0
On
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15D.2 E=ENI9A E. CORP
Re"ister o+ Deeds
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Entr No. $6>6? @ind: Mort"a"e: E(e). In +avor o+: ps. Ansel!o Bulaon"
Pris)illa Bulaon"? Condition: Coverin" te par)el o+ land erein des)ri#ed, +or te
su! o+ P6,4&&,&&&.&& su#e)t to all te )onditions stipulated in te deed o+ !ort"a"e on +ile in tis o++i)e. Do). No. 6%>, Pa"e >, Boo , . o+ ';;4,
N.P. Ro#erto Dionisio o+ Mal. Bul. Date o+ Instru!ent: '-'4-;4? date o+
ins)ription 4-'-;4 at ;:%& a.!.15D.2 E=ENI9A E. CORP
Re"ister o+ Deeds
$4&
1NO9E: Pro)eed to Entr no. $6>62
Entr No. 8>&>: @ind: NO9ICE O< =EFG ON EEC9ION: Conditions: Noti)e is ere# "iven tat # virtue o+ te Hrit o+ E(e)ution, issued in Cri!.
Cases Nos. ;4> to ;6-M, entitled People o+ tePilippines v. Re""ie Cristi
)aet)en =i!po and Maria =ourdes 1Bon"2 Dia 5a!ir, et al., A))used #
te Re"ional 9rial Court, 9ird 3ud. Re"ion, Bran) '%, Malolos, Bula)an, under date o+ De). %;, ';;%, and at te instan)e o+ te private )o!plainant Feroni)a R.
5onales, tru )ounsel, lev on e(e)ution is ere# !ade upon all te ri"ts,sares, interests and parti)ipations o+ a))used Re""ie Cristi )aet)en/'60 over
te real properties des)ri#ed in 9-%6;6' and 9-%6;4;, b1 7irtue of Dee#s of Absolute S"le e8ecute# b1 former re0istere# o6ners in f"7or of Re00ie
Christi Sch"etchen #"te# No7ember )& 55, to"eter it all te
i!prove!ents e(istin" tereon, as levied on e(e)ution preparator to te sale o+
te sa!e itout preudi)e to tird persons avin" #etter ri"t tereo+ and to an
valid lien and en)u!#ran)es. Date o+ instru!ent 3an. 6, ';;4? Date o+ ins)ription 3an. 6, ';;4 at '':$& a.!.
15D.2 E=ENI9A E. CORPRe"ister o+ Deedsne"!/'$0 1e!pasis ours2
9C9 No. 9-4&4;
Entr No. $4&? @ind: Condition: One-al+ 1'%2 o+ te propert erein des)ri#ed
is su#e)t to te prov. o+ se). 6, rule 86 o+ te rules o+ )ourt. date o+ instru!ent: '-'4-;4? date o+ ins)ription: %-%6-;4 at '&:6% a.!.
15D.2 E=ENI9A E. CORP
Re"ister o+ Deeds
Entr No. $6>6? @ind: Mort"a"e: E(e). In +avor o+: ps. Ansel!o Bulaon"
Pris)illa Bulaon"? Condition: Coverin" te par)el o+ land erein des)ri#ed, +or tesu! o+ P6,4&&,&&&.&& su#e)t to all te )onditions stipulated in te deed o+
!ort"a"e on +ile in tis o++i)e. Do). No. 6%>, Pa"e >, Boo , . o+ ';;4,
N.P. Ro#erto Dionisio o+ Mal. Bul. Date o+ Instru!ent: '-'4-;4? date o+ ins)ription 4-'-;4 at ;:%& a.!.
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15D.2 E=ENI9A E. CORP
Re"ister o+ Deeds
$4&
1NO9E: Pro)eed to Entr No. $6>62
Entr No. 8>&>: @ind: NO9ICE O< =EFG ON EEC9ION: Conditions:
Noti)e is ere# "iven tat # virtue o+ te Hrit o+ E(e)ution, issued in Cri!.Cases Nos. ;4> to ;6-M, entitled People o+ tePilippines v. Re""ie Cristi
)aet)en =i!po and Maria =ourdes 1Bon"2 Dia 5a!ir, et al., A))used #
te Re"ional 9rial Court, 9ird 3ud. Re"ion, Bran) '%, Malolos, Bula)an, under
date o+ De). %;, ';;%, and at te instan)e o+ te private )o!plainant Feroni)a R.5onales, tru )ounsel, lev on e(e)ution is ere# !ade upon all te ri"ts,
sares, interests and parti)ipations o+ a))used Re""ie Cristi )aet)en over te
real properties des)ri#ed in 9-%6;6' and 9-%6;4;, b1 7irtue of Dee#s of
Absolute S"le e8ecute# b1 former re0istere# o6ners in f"7or of Re00ieChristi Sch"etchen #"te# No7( )& 55&to"eter it all te i!prove!ents
e(istin" tereon, as levied on e(e)ution preparator to te sale o+ te sa!eitout preudi)e to tird persons avin" #etter ri"t tereo+ and to an valid lien
and en)u!#ran)es. Date o+ instru!ent 3an. 6, ';;4? Date o+ ins)ription 3an. 6,
';;4 at '':$& a.!.
15D.2 E=ENI9A E. CORP
Re"ister o+ Deedsne"!/'0 1e!pasis ours2
It appears tat a )ertain Feroni)a 5onales ad +iled a )ri!inal )ase +or
esta+a a"ainst Re"inait te R9C o+ Bula)an, Bran) '%./'80 On O)to#er %>, ';;',
te R9C rendered a de)ision a)7uittin" Re"ina, #ut at te sa!e ti!e orderin" er
to pa Feroni)a a)tual da!a"es in te total a!ount o+ P%8$,&&&.&&./'>0 B virtue o+
a rit o+ e(e)ution issued on De)e!#er %;, ';;%, te a#ove-7uoted noti)e o+ lev
as re)orded in te Pri!ar Entr Boo o+ te Re"istr o+ Bula)an on3anuar 6,
';;4. Joever, tis as not annotated on te titles te!selves #e)ause at the time
of the levy, the properties had not yet een transferred to Regina, ut were still
registered in the name of her parents./';0
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Based on te annotation re+errin" to te noti)e o+ lev, te su#e)t o+ te
lev as Re"inas interest in te properties i), in turn, as an)ored on a Deed
o+ A#solute ale alle"edl e(e)uted # er parents on Nove!#er $, ';;' to
trans+er teir interest in #ot properties to er. Nota#l, Regina never registered
this sale with the Register of Deeds.
9o satis+ Re"inas ud"!ent de#t, te to lots ere sold at pu#li) au)tion
on 3une >, ';;4 to Feroni)a, te onl #idder, +or P6&,4$6.'6./%&0 9e Certi+i)ate o+
ale as annotated on te titles on 3une >, ';;4 as Entr No. %&8$. pon te lapse
o+ te one ear rede!ption period on 3une %&, ';;6, Feroni)as titles over te
properties ere )onsolidated. A +inal deed o+ sale as issued in Feroni)as na!e
and annotated as Entr No. 6&6%$ on 9C9 Nos. 9-4&4;$ and 9-4&4; on 3une %6,
';;6./%'0
On te oter and, te Bulaon"s also ad te !ort"a"e e(traudi)iall
+ore)losed, it te seri++ )ondu)tin" te au)tion sale on Au"ust %%, ';;6. 9e
Bulaon"s ere te i"est #idders, #uin" te properties +or te su!
o+ P6,4&&,&&&.&&. 9e also paid te )orrespondin" )apital "ains ta(
o+ P%'$,&&&.&&, plus P6,$&&.&& +or te do)u!entar sta!p ta(, i) ere
re7uired #e+ore te titles to te lots )ould #e trans+erred in teir na!es. 9e
Certi+i)ate o+ ale in teir +avor as ins)ri#ed on Au"ust %4, ';;6 on 9C9 No. 9-
4&4;$ and 9C9 No. 9-4&4; as Entr No. 684;./%%0
Feroni)a terea+ter +iled a petition +or te surrender to te Re"ister o+ Deeds
o+ te oners )opies o+ 9C9 Nos. 9-4&4;$ and 9-4&4; it te R9C o+ Malolos,
do)eted as =RC Case No. P-%;%. On De)e!#er ', ';;6, te R9C "ranted te
petition and ordered Re"ina to surrender er oners )opies o+ te titles? sould
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Re"ina +ail to )o!pl, te R9C ordered te Re"ister o+ Deeds to )an)el tese titles
and issue ne ones in Feroni)as na!e. Co!plin" it tis order, te Re"ister o+
Deeds )an)elled 9C9 Nos. 9-4&4;$ and 9-4&4;, and issued 9C9 No. 9-%&&% in
Feroni)as na!e, and 9C9 No. 9-%&&4 in te na!e o+ Feroni)a and Pa)i+i)a
=i!po. /hese ne6 titles 6ere cle"n "n# #i# not cont"in "n1 "nnot"tions& liens
or encumbr"nces.
9e Bulaon"s tus +iled a petition +or !anda!us it te R9C o+ Bula)an
a"ainst Ra!on a!pana, te in)u!#ent Re"ister o+ Deeds o+ Bula)an, and
Feroni)a, prain" tat te )ourt order a!pana to )an)el 9C9 Nos. 9-%&&% and 9-
%&&4, and issue ne titles in teir na!es? and order te respondents terein to pa
te! !oral and e(e!plar da!a"es, and attornes +ees.
On 3ul 4&, ';;;, te R9C ruled in +avor o+ te Bulaon"s. A))ordin" to te
R9C, alloin" Feroni)a to lev on te properties ort at least P$,&&&,&&&.&& +or
a ud"!ent o+ P%8$,&&&.&& ould result in "ross unust enri)!ent. 9e R9C tus
ordered te Re"ister o+ Deeds o+ Bula)an to issue ne titles in te na!e o+ te
Bulaon"s, #ut onl a+ter te Bulaon"s ad rei!#ursed te a!ount o+ P%8$,&&&.&&
to Feroni)a, it interest. 9e R9C also ordered Feroni)a to pa te
Bulaon"sP$&,&&&.&& as attornes +ees. 9e dispositive portion o+ te R9C de)ision
reads:
HJERE
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#asis o+ te re"istered Certi+i)ate o+ ale e(e)uted # said )ourt o++i)er on
Au"ust %4, ';;6, in +avor o+ said spouses-!ort"a"ee, itout te oner-
!ort"a"ors e(er)isin" te ri"t o+ rede!ption sin)e ten?
4. Orderin" te Re"ister o+ Deeds o+ Bula)an to issue ne titles, in pla)e o+
9rans+er Certi+i)ate o+ 9itle Nos. 9-%&&% and 9-%&&4, tis ti!e in te na!eo+ petitioner spouses Ansel!o Bulaon" and Pr/is0)illa Bulaon", as soon as te
a+oresaid +inal deed o+ sale in teir +avor is e(e)uted # te E(-O++i)io eri++
o+ Bula)an and onl a+ter said spouses sall ave paid andor rei!#ursedFeroni)a 5onales lien as ud"!ent )reditor in te a!ount o+ P%8$,&&&.&&,
plus interests at te le"al rate )o!puted +ro! Nove!#er ';, ';;$, until +ull
paid and satis+ied?
6. Order/in"0 erein de+endants Feroni)a R. 5onales and te Re"ister o+ Deedso+ Bula)an upon noti)e o+ tis ud"!ent, not to e++e)t an trans+er,
en)u!#ran)e or an disposition atsoever o+ te par)els o+ land )overed #
9rans+er Certi+i)ates o+ 9itle Nos. %&&% and 9-%&&4, or an part tereo+,
ri"t or interest terein, eiter # sale or an +or! o+ )onvean)e, lien or en)u!#ran)e? and
$. Orderin" onl de+endant Feroni)a R. 5onales to pa erein
petitioners P$&,&&&.&& as ust and e7uita#le attornes +ees, and te )osts o+
suit, de+endant Ra!on C. a!pana as te Re"ister o+ Deeds o+ Bula)anavin" !erel per+or!ed is !inisterial dut o+ +olloin" te )ourt order o+
issuin" titles to de+endant 5onales.
No pronoun)e!ent as to !oral and e(e!plar da!a"es alle"ed in te petition #ut not even testi+ied to # petitioners at te trial./%40
Bot parties appealed to te CA, it te )ase do)eted as CA-5.R. P No.
$$6%4.
/9E COUR/ O. APPEALS DECISION
In its 3ul 4', %&&% de)ision, te CA upeld te validit o+ te Noti)e o+ =ev on
E(e)ution, notin" tat it )reated a lien in +avor o+ te ud"!ent )reditor over te propert. A))ordin" to te CA, en te Bulaon"s re)eived te oners )opies o+
9C9 Nos. 9-4&4;$ and 9-4&4;, te Noti)e o+ =ev as alread annotated on te
titles and, tus, sould ave put te! on "uard. As !ort"a"ees o+ te lots, te
Bulaon"s ad te option to redee! te properties itin te rede!ption period
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provided # la. in)e te +ailed to avail o+ tis re!ed, te )onsolidation o+
titles in Feroni)as na!e as proper.
/9E PE/I/ION
9e Bulaon"s +iled te present petition, raisin" te +olloin" issues:
a2 Heter Entr No. 8>&> is valid?
#2 Heter Feroni)a as a superior ri"t over te properties? and
)2 Assu!in" te noti)e o+ lev earlier annotated in +avor o+ Feroni)a to
#e valid, eter tere as a valid +ore)losure sale.
/9E COUR/S RULIN%
:e %RAN/ the petition(
Procedural issues
9i!e and a"ain, e ave stated tat petitions +or revie on certiorari sall
onl raise 7uestions o+ la, as 7uestions o+ +a)t are not reviea#le # tis
Court. 9e !ain issue o+ o as a #etter ri"t over te disputed properties is not
onl a 7uestion o+ la #ut one tat re7uires a torou" revie o+ te presented
eviden)e, in vie parti)ularl o+ te Bulaon"s alle"ation tat +raud attended te
annotation o+ Entr No. 8>&> in te titles. 9us, in te usual )ourse, e ould
ave denied te present petition +or violation o+ e)tion ', Rule 6$ o+ te Rules o+
Court, i) provides:
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Section ( !iling of petition with "upreme Court . A part desirin" toappeal # certiorari +ro! a ud"!ent or +inal order or resolution o+ te Court o+
Appeals, te andi"an#aan, te Re"ional 9rial Court or oter )ourts enever
autoried # la, !a +ile it te upre!e Court a veri+ied petition +or revieoncertiorari. /he petition sh"ll r"ise onl1 ;uestions of l"6 6hich must be
#istinctl1 set forth( 1e!pasis ours2
9is rule, oever, ad!its o+ several e()eptions. Kuestions o+ +a)t !a #e
revieed, a!on" oters, en te loer )ourt !aes in+eren)es tat are !ani+estl
!istaen, and en te ud"!ent o+ te CA is #ased on a !isappreension o+
+a)ts./%60 As ill #e apparent in te dis)ussions #elo, tese e()eptional
)ir)u!stan)es are present in te present )ase. A revie o+ te eviden)e, tere+ore,
is not onl alloed, #ut is ne)essar +or te proper resolution o+ te presented
issues.
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It as not es)aped our attention tat te Bulaon"s appear to ave erroneousl
+iled a petition +or !anda!us +or at is essentiall an a)tion to assail te validit
o+ Feroni)as )erti+i)ates o+ title over te su#e)t properties. 9is lapse, oever, isnot le"all si"ni+i)ant under te ell-settled rule tat te )ause o+ a)tion in a
)o!plaint is not te title or desi"nation o+ te )o!plaint, #ut te alle"ations in te
#od o+ te )o!plaint. 9e desi"nation or )aption is not )ontrollin" as it is not
even an indispensa#le part o+ te )o!plaint? te alle"ations o+ te )o!plaint
)ontrol./%$0 He tus pro)eed to resolve te )ase, #earin" in !ind tat te relie+ te
Bulaon"s sou"t #e+ore te loer )ourt as to nulli+ Feroni)as )erti+i)ates o+ title
and to order te Re"ister o+ Deeds to issue ne titles in teir na!e.
Redemption not the proper remedy
9e CA +aulted te Bulaon"s +or not redee!in" te properties +ro! Feroni)a
en te ad te option o+ doin" so.
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9e respondent appellate )ourtLs e!pasis on te +ailure o+ te petitioner
to redee! te properties itin te period re7uired # la is !ispla)ed #e)ause
rede!ption, in tis )ase, is in)onsistent it te petitionerLs )lai! o+ invalidit o+ lev and sale. Re#emption is "n implie# "#mission of the re0ul"rit1 of the s"le"n# 6oul# estop the petitioner from l"ter impu0nin0 its 7"li#it1 on th"t
0roun#([3
1e!pasis ours2
9e Bulaon"s ere tus usti+ied in teir re+usal to redee! te properties.
Annotation is valid
9e Bulaon"s assail te validit o+ Entr No. 8>&> 1relatin" to te Noti)e o+
=ev on E(e)ution in Feroni)as +avor2 on te to titles, assertin" tat it is null and
void +or #ein" a +raudulent entr. In support o+ tis )ontention, te note te
+olloin" suspi)ious )ir)u!stan)es: 1a2 altou" Entr No. 8>&> as a i"er
nu!#er and appears a+ter Entr No. $6>6 1)orrespondin" to te Bulaon"s
!ort"a"e2 on te titles, Entr No. 8>&> appeared in an earlier volu!e o+ te Boo
o+ Entries? and 1#2 altou" te Noti)e o+ =ev on E(e)ution as purportedl
presented to te Re"istr o+ Bula)an on 3anuar 6, ';;4, or prior to te date en
te Bulaon"s deed o+ !ort"a"e as presented on 3anuar '4, ';;4, te Noti)e o+
=ev on E(e)ution, Entr No. 8>&>, as nu!#ered and pla)ed after te !ort"a"e,
Entr No. $6>6, on te titles.
He a"ree tat tese )ir)u!stan)es render te Noti)e o+ =ev on E(e)ution,
annotated on te titles, i"l suspi)ious. 9ese )ir)u!stan)es, oever, )an #e
su++i)ientl e(plained en te re)ords are e(a!ined.
9e re)ords so tat on 3anuar 6, ';;4, Feroni)a ent to te Re"istr o+
Bula)an it te Noti)e o+ =ev on E(e)ution, re7uestin" tat te noti)e #e
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re"istered. Hile te Re"ister o+ Deeds pla)ed te Noti)e o+ =ev on E(e)ution in
te Pri!ar Entr Boo, se did not i!!ediatel !ae a re"istration en a
7uestion arose re"ardin" te re"istra#ilit o+ te noti)e? te 7uestion ne)essitated
te su#!ission o+ a consulta to te =and Re"istration Autorit 1 $RA2 on 3anuar
%$, ';;4./%>0
9e =RA Ad!inistrator responded to te consulta onl on &>.
9e apparent dis)repan) in te nu!#erin" o+ te Noti)e o+ =ev on
E(e)ution and te date o+ ins)ription on te )erti+i)ates o+ title is suita#l
e(plained # e)tion $ o+ Presidential De)ree No. '$%; ose pertinent portion
states:
e)tion $. %rimary &ntry Boo'( fees( certified copies. Ea) Re"ister o+
Deeds sall =eep " prim"r1 entr1 boo= in 6hich, upon pa!ent o+ te entr
+ee, he sh"ll enter& in the or#er of their reception& "ll instruments inclu#in0
copies of 6rits "n# processes file# 6ith him relatin" to re"istered land. Je sall,as a preli!inar pro)ess in re"istration, note in such boo= the #"te& hour "n#minute of reception of "ll instruments& in the or#er in 6hich the1 6ere
recei7e#( 9e sall #e re"arded as re"istered +ro! te ti!e so noted, and the
memor"n#um of e"ch instrument& 6hen m"#e on the certific"te of title to
6hich it refers& sh"ll be"r the s"me #"te: Provided, tat te national"overn!ent as ell as te provin)ial and )it "overn!ents sall #e e(e!pt +ro!te pa!ent o+ su) +ees in advan)e in order to #e entitled to entr and
re"istration. /e!pases ours0
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In oter ords, te order o+ entries in te Pri!ar Entr Boo deter!ines
te priorit in re"istration. 9us, te Re"ister o+ Deeds !erel )o!plied it te
la en se +i(ed Entr No. 8>&>s date o+ ins)ription as 3anuar 6, ';;4, to
)oin)ide it te date en te Noti)e o+ =ev on E(e)ution as presented and
ins)ri#ed in te Pri!ar Entr Boo.
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9e late annotation o+ te lev on e(e)ution on te titles did not at all lessen
its e++e)tivit.3urispruden)e as alread esta#lised te rule tat te entr o+ te
noti)e o+ lev on e(e)ution in tePri!ar Entr Boo, even itout te
)orrespondin" annotation on te )erti+i)ate o+ titles, is su++i)ient noti)e to all
persons tat te land is alread su#e)t to te lev./4&0 As e e(plained in Armed
!orces and %olice )utual Benefit Association, #nc. v. "antiago:/4'0
9e noti)e o+ lev on atta)!ent in +avor o+ petitioner !a #e annotated
on 9C9 No. P9-;6;'%. $evin v. Bass 1;' Pil. 6%& /';$%0? see also *r. Caviles, Jr.v. Bautista, 488 Pil. %$? 4'; CRA %6 /';;;0? +arcia v. Court of Appeals, '>6
Pil. 4$>? ;$ CRA 4>& /';>;&02 provided te distin)tion #eteen voluntar
re"istration and involuntar re"istration. In voluntary registration, su) as a sale,
!ort"a"e, lease and te lie, i+ te onerLs dupli)ate )erti+i)ate #e not surrenderedand presented or i+ no pa!ent o+ re"istration +ees #e !ade itin +i+teen 1'$2
das, entr in te da #oo o+ te deed o+ sale does not operate to )onve and
a++e)t te land sold. In involuntary registration, su) as an atta)!ent, lev upone(e)ution, lis pendens and te lie, entr1 thereof in the #"1 boo= is " sufficient
notice to "ll persons of such "#7erse cl"im(
9e entr o+ te noti)e o+ lev on atta)!ent in te pri!ar entr #oo or
da #oo o+ te Re"istr o+ Deeds on epte!#er '6, ';;6 is su++i)ient noti)e to
all persons, in)ludin" te respondent, tat te land is alread su#e)t to anatta)!ent. /he e"rlier re0istr"tion of the notice of le71 on "tt"chment
"lre"#1 bin#s the l"n# insof"r "s thir# persons "re concerne#( /4%0 1e!pases
ours2
Conse7uentl, en te Re"ister o+ Deeds pla)ed te Noti)e o+ =ev on
E(e)ution in te Pri!ar Entr Boo on 3anuar 6, ';;4, tis entr alread #ound
tird persons to te noti)e entered.
Validity of the Levy
i. Reginas interest in the properties is not established
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9e lev on e(e)ution +or ud"!ent is te a)t ( ( ( # i) an o++i)er sets
apart or appropriate/s,0 +or te purpose o+ satis+in" te )o!!and o+ te rit, a
part or te ole o+ te ud"!ent de#tors propert./440 Ever interest i) te
ud"!ent de#tor !a ave in te propert !a #e su#e)ted to lev on e(e)ution.
/460 As esta#lised # te Court in Reyes v. +rey:/4$0
9e ter! propert as ere applied to lands )o!preends ever spe)ies o+ title, incho"te or complete? le0"l or e;uit"ble. 9is statute autories te sale
under e(e)ution o+ ever ind o+ propert, and every interest in propert i) is,
or !a #e, te su#e)t o+ private onersip and trans+er. It deals it e7uita#leri"ts and interests as it deals it le"al, itout anere e(pressl re)o"niin"
or !ain" an distin)tion #eteen te!. /e!pases ours0
In Reyes, te Court set te standard to #e applied in deter!inin" te ind o+
propert tat )an #e su#e)t to atta)!ent:
He tin te real test, as to eter or not propert )an #e atta)ed and sold upon
e(e)ution is #oes the >u#0ment #ebtor hol# such " benefici"l interest in such
propert1 th"t he can sell or otherwise dispose of it for 7"lue I+ e does, ten
te propert is su#e)t to e(e)ution and pa!ent o+ is de#ts. /401e!pasis and
unders)orin" ours2
Applin" te test in Reyes, te Court, in +otauco Co. v. Register of *eeds
of Tayaas,/480re)o"nied as valid te ins)ription o+ a noti)e o+ lev on e(e)ution on
te )erti+i)ates o+ title, even tou" te titles ere not in te na!e o+ te ud"!ent
de#tor 1Ra+ael Filar2. A))ordin" to te Court, ile te )erti+i)ates o+ title ere
still re"istered in te na!e o+
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i!ilarl, in %acific Commercial Co. v. +eaga,/4>0 te Court eld tat altou" te
Re"ister o+ Deeds !a properl ree)t an atta)!ent ere it appears tat te titles
involved are not re"istered in te na!e o+ te de+endants 1de#tors2, tat rule ields
to a )ase ere tere is eviden)e su#!itted to indi)ate tat te de+endants ave
present or future interests in te propert )overed # said titles, re"ardless o+
eter te still stand in te na!es o+ oter persons. 9e +a)t tat te present
interests o+ te de+endants are still indeter!inate, and even tou" tere as no
udi)ial de)laration o+ eirsip et, is o+ no )onse7uen)e +or te purpose o+
re"isterin" te atta)!ent in 7uestion. 9is is te )ase sin)e 6h"t is bein0"tt"che# "n# 6h"t m"1 be l"ter sol# "t public "uction in pursu"nce of the
"tt"chment c"nnot be "n1thin0 more th"n 6h"te7er ri0hts& titles& interests "n#
p"rticip"tions 6hich the #efen#"nts m"1 or mi0ht h"7e in the propert1 so
"tt"che#( In oter ords, i+ te ad a)tuall notin" in te propert, ten notin"
is a++e)ted and te propert ill re!ain inta)t./4;0 9is rule is e(pressed in e)tion
4$, Rule 4; o+ te old Rules o+ Civil Pro)edure, i) provides:
pon te e(e)ution and deliver o+ said deed /o+ )onvean)e and possession0, te pur)aser, or rede!ptioner, or is assi"nee, sall #e su#stituted to
and "c;uire "ll the ri0ht& title& interest "n# cl"im of the >u#0ment #ebtor tothe propert1 "s of the time of the levy[(! /e!pases ours0
Altou" e re)o"nie te validit o+ te annotation o+ te lev on te
e(e)ution in te present )ase, te 7uestion o+ eter te lev itsel+ is valid
re!ains to #e deter!ined. 9o do tis, Re"inas interest in te su#e)t properties at
te ti!e o+ te lev as to #e as)ertained. 9o re)all, Feroni)asnoti)e o+ lev on
e(e)ution is #ased on Re"inas interest in te to properties, i) se
a)7uiredvia te Deed o+ A#solute ale purportedl e(e)uted # er parents in er
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+avor on Nove!#er $, ';;'. But is tis Deed o+ A#solute ale a su++i)ient eviden)e
o+ Re"inas interest in te su#e)t properties
A+ter )are+ull reviein" te eviden)e on re)ord, e rule in te ne"ative.
9o #e"in it, not onl ere te properties su#e)t o+ te atta)!ent not
re"istered in Re"inas na!e, te Deed o+ A#solute ale on i) Re"ina #ased er
interest was not even annotated on these titles. Hile Re"ina purportedl
pur)ased er parents ri"ts to te su#e)t properties in ';;', se never asserted
er ri"ts over tese properties # presentin" te Deed o+ A#solute ale to te
Re"ister o+ Deeds +or re"istration and annotation on te titles. As a !atter o+ +a)t, it
as Feroni)a, and not Re"ina, o presented te Deed o+ A#solute ale to te
Re"ister o+ Deeds.
More i!portantl, +ro! te re)ords, it is )lear tat the sub>ect properties
6ere fin"ll1 re0istere# in Re0in"s n"me& not b1 7irtue of the 55 Dee# of
Absolute S"le& but by virtue of succession, spe)i+i)all # te Adudi)ation
tat Re"ina +iled it te Re"ister o+ Deeds on
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Anoter point to )onsider is tat Re"ina dealt it te Bulaon"s as er
+aters representative en te ere ne"otiatin" te !ort"a"e over te properties.
/640 I+ se ad alread a)7uired er parents interest in tese properties in ';;', se
ould not ave needed an autorit +ro! er +ater to e(e)ute te !ort"a"e it
te Bulaon"s? se ould ave done so in er on )apa)it.
9ese +a)ts, taen to"eter, lead us to dou#t tat Re"ina ad an interest in
te properties at te ti!e o+ te lev. 9us, unlie in te previousl )ited )ases
ere te de#tors, altou" possessin" !erel an in)oate interest in te
properties at te ti!e o+ te lev, ad interests tat ere esta#lised it
reasona#le )ertaint and )ould #e te su#e)t o+ atta)!ent? in te present )ase, the
e7i#ence on recor# f"ils to pro7e th"t Re0in" "ctu"ll1 h"# any interest in the
properties 6hich coul# be the sub>ect of le71(
9e sprin" )annot rise i"er tan its sour)e./660 in)e Re"ina ad no
esta#lised interest in te su#e)t properties at te ti!e o+ te lev, Feroni)as lev
ad notin" to atta) to in te su#e)t properties.
ii. Unregistered sale of land cannot bind third parties
Even assu!in" tat te Deed o+ A#solute ale in Re"inas +avor as valid,
e still )annot upold te validit o+ te lev and e(e)ution sale in Feroni)as
+avor.
9e "eneral rule in dealin" it re"istered land is set +ort in e)tion $' o+
P.D. No. '$%;:
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e)tion $'. Conveyance and other dealings y registered owner . An oner
o+ re"istered land !a )onve, !ort"a"e, lease, )ar"e or oterise deal it te
sa!e in a))ordan)e it e(istin" las. Je !a use su) +or!s o+ deeds,!ort"a"es, leases or oter voluntar instru!ents as are su++i)ient in la. Butno#ee#, !ort"a"e, lease, or oter voluntar instru!ent, e()ept a ill purportin" to
)onve or a++e)t re"istered land sh"ll t"=e effect "s " con7e1"nce or bin# thel"n#, #ut sall operate onl as a )ontra)t #eteen te parties and as eviden)e o+
autorit to te Re"ister o+ Deeds to !ae re"istration.
/he "ct of re0istr"tion sh"ll be the oper"ti7e "ct to con7e1 or "ffect
the l"n# insof"r "s thir# persons "re concerne# , and in all )ases under tis
De)ree, te re"istration sall #e !ade in te o++i)e o+ te Re"ister o+ Deeds +or
te provin)e or )it ere te land lies. /e!pases ours0
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o+ title and a person dealin" it te oner o+ te re"istered land is not #ound to
"o #eind te )erti+i)ate and in7uire into transa)tions, te e(isten)e o+ i) is not
tere inti!ated./60 Since the $ul"on0s h"# no =no6le#0e of the unre0istere#
s"le bet6een Re0in" "n# her p"rents& the $ul"on0s c"n neither be boun# b1 it&
nor c"n the1 be pre>u#ice# b1 its conse;uences( 9is is #ut te lo"i)al )orollar
to te rule set +ort in e)tion $' o+ P.D. No. '$%;, in eepin" it te #asi) le"al
!a(i! tat at )annot #e done dire)tl )annot #e done indire)tl.
!ecution sale in Veronicas favor was highly irregular
He also +ind tat te e(e)ution sale in +avor o+ Feroni)a is invalid #e)ause Re"inas
interest in #ot lots as sold to"eter, in violation o+ e)tions '$ and %', Rule 4;
o+ te old Rules o+ Court. 9e pertinent portions o+ tese provisions provide:
e)tion '$. &xecution of money judgments. 9e o++i)er !ust en+or)e an e(e)ution
o+ a !one ud"!ent # levin" on all te propert, real and personal o+ ever
na!e and nature atsoever, and i) !a #e disposed o+ +or value, o+ te ud"!ent de#tor not e(e!pt +ro! e(e)ution, or on a su++i)ient a!ount o+ su)
propert, i+ tere #e su++i)ient, and sellin" te sa!e, and pain" to te ud"!ent)reditor, or is attorne, so !u) o+ te pro)eeds as ill satis+ te ud"!ent.An e()ess in te pro)eeds over te ud"!ent and a))ruin" )osts !ust #e
delivered to te ud"!ent de#tor, unless oterise dire)ted # te ud"!ent or
order o+ te )ourt. Hen tere is !ore propert o+ te ud"!ent de#tor tan issu++i)ient to satis+ te ud"!ent and a))ruin" )osts, itin te vie o+ te
o++i)er, he must le71 onl1 on such p"rt of the propert1 "s is "mpl1 sufficientto s"tisf1 the >u#0ment "n# costs.
e)tion %'. -ow property sold on execution. ho may direct manner and order
of sale. All sales o+ propert under e(e)ution !ust #e !ade at pu#li) au)tion, to
te i"est #idder, #eteen te ours o+ nine in te !ornin" and +ive in tea+ternoon. After sufficient property has been sold to satisfy the e!ecution" no
more shall be sold ( Hen te sale is o+ real propert, )onsistin" o+ several non
lots, they must be sold separately? or, en a portion o+ su) real propert is
)lai!ed # a tird person, e !a re7uire it to #e sold separatel. /e!pases ours0
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Here te propert to #e sold )onsists o+ distin)t lots, tra)ts or par)els, or is
sus)epti#le o+ division itout inur, it sould #e o++ered +or sale in par)els and
not en masse, +or te reason tat a sale in tat !anner ill "enerall realie te
#est pri)e, and ill not result in tain" +ro! te de#tor an !ore propert tan is
ne)essar to satis+ te ud"!ent. It ill also ena#le te de+endant to redee! an
one or !ore o+ te par)els itout #ein" )o!pelled to redee! all te land sold.
/680 A sale o+ additional land or personal propert a+ter enou" as #een sold to
satis+ te ud"!ent is unautoried./6>0
Hile te "eneral poli) o+ te la is to sustain e(e)ution sales, te sale
!a #e set aside ere tere is a resultin" inur #ased on +raud, !istae and
irre"ularit./6;0 Here te properties ere sold to"eter en te sale o+ less tan
te ole ould ave #een su++i)ient to satis+ te ud"!ent de#t, te sale !a #e
set aside./$&0
In Caja v. /an0uil , /$'0 e too udi)ial noti)e o+ te +a)t tat te value o+ a
propert as usuall #i""er tan te a!ount +or i) it )ould #e
!ort"a"ed. in)e te to properties, taen to"eter, ere !ort"a"ed to te
petitioners to se)ure a loan ort P6,4&&,&&&.&&, e )an easil assu!e tat tese
properties are ort at least tis a!ount. Even Feroni)a does not )ontest tis
assu!ption.
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to te Bulaon"s. 9o our !inds, tis renders te e(e)ution sale de+e)tive, and
provides su++i)ient "round +or us to set te sale aside.
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AN/ONIO /( CARPIO
Asso)iate 3usti)e
Cairperson
?OSE POR/U%AL PERE'
Asso)iate 3usti)e
?OSE CA/RAL MENDO'A
Asso)iate 3usti)e
MARIA LOURDES P( A( SERENO
Asso)iate 3usti)e
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A / / E S / A / I O N
I attest tat te )on)lusions in te a#ove De)ision ad #een rea)ed in )onsultation
#e+ore te )ase as assi"ned to te riter o+ te opinion o+ te Courts Division.
AN/ONIO /( CARPIO
Asso)iate 3usti)e
Cairperson
C E R / I . I C A / I O N
Pursuant to e)tion '4, Arti)le FIII o+ te Constitution, and te DivisionCairpersons Attestation, it is ere# )erti+ied tat te )on)lusions in te a#ove
De)ision ad #een rea)ed in )onsultation #e+ore te )ase as assi"ned to te riter
o+ te opinion o+ te Courts Division.
RENA/O C( CORONA
Cie+ 3usti)e
/'0 u#stituted # is eir 3oel Bulaon", pursuant to te Courts 3anuar 4', %&&$ Resolution.* Desi"nated as additional Me!#er vi)e Asso)iate 3usti)e Bienvenido =. Rees per pe)ial Order No. '&
dated Au"ust %4, %&''./%0 Penned # Asso)iate 3usti)e Con)ita Carpio Morales 1a +or!er !e!#er o+ tis Court2, and )on)urred in #
Asso)iate 3usti)es Martin . Fillara!a, 3r. and Mariano C. del Castillo, o are Me!#ers o+ tis Court. Rollo, pp.
$4-'./40 #d . at 4-6./60
#d . at >'->8./$0 #d . at >'./0 #d . at '>$./80 #d . at >'./>0 #d . at '>./;0 #d . at '>$./'&0 #d . at >'./''0 #d . at '>-'>8./'%0 #d . at '>8./'40 #d . at '>>.
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/'60 Also non as Re"ina =i!po./'$0 Rollo, pp. '>>-';&./'0 #d . at ';&-';'./'80 Cri!inal Case Nos. ;4> to ;$4-M? id. at %%./'>0 9e dispositive portion o+ te de)ision stated:
HJERE6 Pil. 4$> 1';>&2? *r. Caviles, Jr. v. Bautista, 488 Pil. %$ 1';;;2? and Autocorp +roup and Autographics, #nc. v.
Court of Appeals, 6>' Pil. %;> 1%&&62./4'0 5.R. No. '68$$;, 3une %8, %&&>, $$ CRA 6./4%0 #d . at $6-$$./440 Fi)ente 3. 1';462./4$0 %' Pil. 84, 8$ 1';''2./40 #d . at 8./480
$; Pil. 8$ 1';462./4>0 ; Pil. 6. 1';4;2, )ited in Nar)iso Pea, Re"istration o+ =and 9itles and Deeds, ';;6 ed., p. &6./4;0 /arciso %ea, supra, )itin" =RC Consulta No. $, Re"ister o+ Deeds o+ Al#a, pet., 3ul ;, '$$$./6&0 Rollo, p. %&./6'0 e)tion '. &xtrajudicial settlement y agreement etween heirs. ((( I+ tere is onl one eir, e !a adudi)ate
to i!sel+ te entire estate # !eans o+ an a++idavit +iled in te o++i)e o+ te re"ister o+ deeds. 9e parties to an
e(traudi)ial settle!ent, eter # pu#li) instru!ent or # stipulation in a pendin" a)tion +or partition, or te soleeir o adudi)ates te entire estate to i!sel+ # !eans o+ an a++idavit sall +ile, si!ultaneousl it and as a
)ondition pre)edent to te +ilin" o+ te pu#li) instru!ent, or stipulation in te a)tion +or partition, or o+ te a++idavit
in te o++i)e o+ te re"ister o+ deeds, a #ond it te said re"ister o+ deeds, in an a!ount e7uivalent to te value o+
te personal propert involved as )erti+ied to under oat # te parties )on)erned and )onditioned upon te pa!ento+ an ust )lai! tat !a #e +iled under e)tion 6 o+ tis rule. It sall #e presu!ed tat te de)edent le+t no de#ts i+
no )reditor +iles a petition +or letters o+ ad!inistration itin to 1%2 ears a+ter te deat o+ te de)edent./6%0
Rollo, p. %&./640 "upra note ;./660 Repulic of the %hils. v. -on. )amindiara %. )angotara, etc., et al., 5.R. Nos. '8&48$, '8&$&$, '844$$-$,
'846&', '84$4-6, '8>88;, and '8>>;6, O)to#er '4, %&'&, )itin" "anche3 v. 4uinio, $&% Pil. 6&, 6; 1%&&$2./6$0 Nar)iso Pea, supra note 4>, at '>;./60 Bass v. *ela Rama, 84 Pil. >% 1';6%2, )itin" 4uimson v. "uare3 , 6$ Pil. ;&', ;& 1';%62./680 ee Fi)ente 3.
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/$'0 6>' Pil. 6>> 1%&&62.
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