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Lucero v. Loot and SIHI v. CA
Lucero v. Loot and SIHI v. CA
RULING:
FACTS:
(2) Whether persons dealing with property covered
by Torrens Certificate of Title are not required to go
On October 15, 1969, Contract to Sell No. 36 was
beyond what appears on the face of the title.
executed by the Spouses Canuto and Ma.
Aranzuzu Oreta, and the Solid Homes, Inc
(SOLID), involving a parcel of land identified as
RULING:
Block No. 8, Lot No. 1, Phase I of the Capitol Park
Homes Subdivision located in Quezon City. (1) Yes.
Upon signing of the contract, Oreta made payment STATEs registered mortgage right over the
amounting to P7,869.40 with the agreeement that property is inferior to that of respondents-spouses
the balance shall be payable in monthly unregistered right. The unrecorded sale between
instalments. respondents-spouses and SOLID is preferred for
the reason that if the original owner (SOLID, in this
November 4, 1976- SOLID executed several real
case) had parted with his ownership of the thing
estate contracts in favour of State Investment
sold then he no longer had ownership and free
Homes Inc. (STATE), one of which is the subject lot
disposal of that thing so as to be able to mortgage
covered by TCT No. 209642.
it again. Registration of the mortgage is of no
moment since it is understood to be without
SOLID failed to comply with its mortgage
prejudice to the better right of third parties
obligations, so STATE extra-judicially foreclosed
the mortgaged properties including the subject lot.