Professional Documents
Culture Documents
Case Digest Possession
Case Digest Possession
On July 20, 1981, herein petitioner Development Bank of the Philippines (DBP) executed a "Deed of Absolute Sale" in favor
of respondent spouses Celebrada and Abner Mangubat over a parcel of unregistered land identified as Lot 1, PSU-142380,
situated in the Barrio of Toytoy, Municipality of Garchitorena, Province of Camarines Sur, containing an area of 55.5057
hectares, more or less.
The land, covered only by a tax declaration, is known to have been originally owned by one Presentacion Cordovez, who,
on February 4, 1937, donated it to Luciano Sarmiento. On June 8, 1964, Luciano Sarmiento sold the land to Pacifico Chica.
On April 27, 1965, Pacifico Chica mortgaged the land to DBP to secure a loan of P6,000.00. However, he defaulted in the
payment of the loan, hence DBP caused the extrajudicial foreclosure of the mortgage. In the auction sale held on
September 9, 1970, DBP acquired the property as the highest bidder and was issued a certificate of sale on September 17,
1970 by the sheriff. The certificate of sale was entered in the Book of Unregistered Property on September 23, 1970.
Pacifico Chica failed to redeem the property, and DBP consolidated its ownership over the same.
On October 14, 1980, respondent spouses offered to buy the property for P18,599.99. DBP made a counter-offer of
P25,500.00 which was accepted by respondent spouses. The parties further agreed that payment was to be made within six
months thereafter for it to be considered as cash payment. On July 20, 1981, the deed of absolute sale, which is now being
assailed herein, was executed by DBP in favor of respondent spouses. Said document contained a waiver of the seller's
warranty against eviction.2
Thereafter, respondent spouses applied for an industrial tree planting loan with DBP. The latter required the former to
submit a certification from the Bureau of Forest Development that the land is alienable and disposable. However, on
October 29, 1981, said office issued a certificate attesting to the fact that the said property was classified as timberland,
hence not subject to disposition.3
The loan application of respondent spouses was nevertheless eventually approved by DBP in the sum of P140,000.00,
despite the aforesaid certification of the bureau, on the understanding of the parties that DBP would work for the release of
the land by the former Ministry of Natural Resources. To secure payment of the loan, respondent spouses executed a real
estate mortgage over the land on March 17, 1982, which document was registered in the Registry of Deeds pursuant to Act
No. 3344.
The loan was then released to respondent spouses on a staggered basis. After a substantial sum of P118,540.00 had been
received by private respondents, they asked for the release of the remaining amount of the loan. It does not appear that
their request was acted upon by DBP, ostensibly because the release of the land from the then Ministry of Natural
Resources had not been obtained.
On July 7, 1983, respondent spouses, as plaintiffs, filed a complaint against DBP in the trial court 4 seeking the annulment of
the subject deed of absolute sale on the ground that the object thereof was verified to be timberland and, therefore, is in law
an inalienable part of the public domain. They also alleged that petitioner, as defendant therein, acted fraudulently and in
bad faith by misrepresenting itself as the absolute owner of the land and in incorporating the waiver of warranty against
eviction in the deed of sale.5
In its answer, DBP contended that it was actually the absolute owner of the land, having purchased it for value at an auction
sale pursuant to an extrajudicial foreclosure of mortgage; that there was neither malice nor fraud in the sale of the land
under the terms mutually agreed upon by the parties; that assuming arguendo that there was a flaw in its title, DBP can not
be held liable for anything inasmuch as respondent spouses had full knowledge of the extent and nature of DBP's rights,
title and interest over the land.
ISSUE:
1. Whether or not private respondent spouses Celebrada and Abner Mangubat should be ordered to pay petitioner DBP
their loan obligation due under the mortgage contract executed between them and DBP; and
2. Whether or not petitioner should reimburse respondent spouses the purchase price of the property and the amount of
P11,980.00 for taxes and expenses for the relocation Survey. 11
RULING:
. Correspondingly, respondent court correctly applied the rule that if both parties have no fault or are not guilty, the
restoration of what was given by each of them to the other is consequently in order. 12
Therefore, the purchaser is entitled to recover the money paid by him where the contract is set aside by reason of the
mutual material mistake of the parties as to the identity or quantity of the land sold. 15 And where a purchaser recovers the
purchase money from a vendor who fails or refuses to deliver the title, he is entitled as a general rule to interest on the
money paid from the time of payment. 16
As a general rule, if one buys the land of another, to which the latter is supposed to have a good title, and, in consequence
of facts unknown alike to both parties, he has no title at all, equity will cancel the transaction and cause the purchase money
to be restored to the buyer, putting both parties in status quo. 19
In its legal context, the contract of loan executed between the parties is entirely different and discrete from the deed of sale
they entered into. The annulment of the sale will not have an effect on the existence and demandability of the loan. One
who has received money as a loan is bound to pay to the creditor an equal amount of the same kind and quality. 23
It was likewise incorrect for the Court of Appeals to deny the claim of petitioner for payment of the loan on the ground that it
failed to present the promissory note therefor.
Thus, the mortgage contract which embodies the terms and conditions of the loan obligation of respondent spouses, as well
as respondent Celebrada Mangubat's admission in open court, are more than adequate evidence to sustain petitioner's
claim for payment of private respondents' aforestated indebtedness and for the adjudication of DBP's claim therefor in the
very same action now before us.
GABRIEL VS CRISOLOGO
FACTS:
Crisologo alleged, among others, that she was the registered owner of two parcels of land with a
total area of approximately 2,000 square meters, described in, and covered by, two (2) certificates of
title – Transfer Certificate of Title (TCT) Nos. T-13935 and T-13936
; that sometime in 2006, she discovered that petitioners unlawfully entered, occupied her properties
by stealth, by force and without her prior consent and knowledge, and constructed their houses
thereon; that upon discovery of their illegal occupation, her daughter, Atty. Carmelita Crisologo, and
Isican personally went to the properties and verbally demanded that petitioners vacate the premises
and remove their structures thereon; that the petitioners begged and promised to buy the said
properties for ?3,500.00 per square meter; that she gave petitioners time to produce the said
amount, but they reneged on their promise to buy them; that petitioners refused to vacate the
subject properties despite several demands; that the petitioners knew full well that the subject
premises they were occupying were titled properties but they insisted on unlawfully holding the
same; and that she was unlawfully dispossessed and displaced from the subject properties due to
petitioners’ illegal occupation.
petitioners countered that the titles of Crisologo were products of Civil Registration Case No. 1,
Record 211, which were declared void by the Supreme Court in Republic v. Marcos
that Crisologo failed to comply with the conditions provided in Section 1 of P.D. No. 1271 for the
validation of said titles, hence, the titles were void; that petitioners had been in open, actual,
exclusive, notorious, uninterrupted, and continuous possession of the subject land, in good faith; and
that Crisologo was never in prior possession and had no valid title over the subject land. 8
ISSUE:
who between petitioners and respondent Crisologo have a better right of possession over the subject
parcels of land.
RULING:
the Court holds that Crisologo has a better right of possession over the subject parcels of land.
the petitioners have raised the issue of ownership in their pleadings. They mainly argue that
Crisologo’s titles on the subject properties are void and that they have been in open, actual,
exclusive, notorious, uninterrupted and continuous possession over the subject properties in good
faith.
Although Section 1 of P.D. No. 127113 invalidated decrees of registration and certificates of title
within the Baguio Townsite Reservation Case No. 1, GLRO Record No. 211, the nullity, however, is
not that sweeping.
At any rate, petitioners, as private individuals, are not the proper parties to question the status of
the respondent’s registered titles. Section 6 of P.D. No. 1271 14 expressly states that the “Solicitor
General shall institute such actions or suits as may be necessary to recover possession of lands
covered by all void titles not validated under this Decree.”
It is settled that a Torrens title is evidence of indefeasible title to property in favor of the person in
whose name the title appears. It is conclusive evidence with respect to the ownership of the land
described therein. It is also settled that the titleholder is entitled to all the attributes of ownership of
the property, including possession.
The records show that TCT No. T-1393517 and TCT No. T-1393618 bear the name of Carmeling P.
Crisologo, as the registered owner. Petitioners do not dispute the fact that she has a Torrens title
over the subject parcels of land.
The testimonial and documentary evidence on record prove that Crisologo has a preferred claim of
possession over that of petitioners.