Republic of the Philippines SUPREME COURT Manila FIRST DIVISION

G.R. No. !"!# Ma$ #%& '((' R)DIO*E)+T, FIN)NCE COMP)N-& petitione.& /s. M)NUE+ITO S. P)+I+EO& .espon0ent. Rolan0o ). Calan1 fo. petitione.. Sisenan0o Villalu2& S.. fo. .espon0ent.

G)NC)-CO& 3.4p If the sa5e piece of lan0 6as sol0 to t6o 0iffe.ent pu.chase.s& to 6ho5 shall o6ne.ship belon17 ).ticle '8"" of the Ci/il Co0e p.o/i0es that in case of 0ouble sale of an i55o/able p.ope.t$& o6ne.ship shall be t.ansfe..e04 9': to the pe.son ac;ui.in1 it 6ho in 1oo0 faith fi.st .eco.0e0 it in the Re1ist.$ of P.ope.t$< 9#: in 0efault the.eof& to the pe.son 6ho in 1oo0 faith 6as fi.st in possession< an0 9!: in 0efault the.eof& to the pe.son 6ho p.esents the ol0est title& p.o/i0e0 the.e is 1oo0 faith. The.e is no a5bi1uit$ .e1a.0in1 the application of the la6 6ith .espect to lan0s .e1iste.e0 un0e. the To..ens S$ste5. Section 8' of P.esi0ential Dec.ee No. '8#( 9a5en0in1 Section 8% of )ct No. "(= clea.l$ p.o/i0es that the act of .e1ist.ation is the ope.ati/e act to con/e$ o. affect .e1iste.e0 lan0s insofa. as thi.0 pe.sons a.e conce.ne0. Thus& a pe.son 0ealin1 6ith .e1iste.e0 lan0 is not .e;ui.e0 to 1o behin0 the .e1iste. to 0ete.5ine the con0ition of the p.ope.t$. ,e is onl$ cha.1e0 6ith notice of the bu.0ens on the p.ope.t$ 6hich a.e note0 on the face of the .e1iste. o. ce.tificate of title. ' Follo6in1 this p.inciple& this Cou.t has ti5e an0 a1ain hel0 that a pu.chase. in 1oo0 faith of .e1iste.e0 lan0 9co/e.e0 b$ a To..ens Title: ac;ui.es a 1oo0 title as a1ainst all the t.ansfe.ees the.eof 6hose .i1ht is not .eco.0e0 in the .e1ist.$ of 0ee0s at the ti5e of the sale. # The ;uestion that has to be .esol/e0 in the instant petition is 6hethe. o. not the .ule p.o/i0e0 in ).ticle '8"" of the Ci/il Co0e as 0iscusse0 abo/e& is applicable to a pa.cel of un.e1iste.e0 lan0 pu.chase0 at a >u0icial sale. To be 5o.e specific& this Cou.t is as?e0 to 0ete.5ine 6ho& as bet6een t6o bu$e.s of un.e1iste.e0 lan0& is the .i1htful o6ne.@the fi.st bu$e. in a p.io. sale that 6as un.eco.0e0& o. the secon0 bu$e. 6ho pu.chase0 the lan0 in an eAecution sale 6hose t.ansfe. 6as .e1iste.e0 in the Re1iste. of Dee0s. The facts as foun0 b$ the Cou.t of )ppeals a.e as follo6s4 On )p.il '!& '(B%& 0efen0ant spouses En.i;ue Cast.o an0 ,e.5inia R. Cast.o sol0 to plaintiffCappellee Manuelito Palileo 9p.i/ate .espon0ent he.ein:& a pa.cel of un.e1iste.e0 coconut lan0 situate0 in Can0iis& Mansa$a6& Mainit& Su.i1ao 0el No.te. The sale is e/i0ence0 b$ a nota.i2e0 Dee0 of )bsolute Sale 9EAh. DED:. The 0ee0 6as not .e1iste.e0 in the Re1ist.$ of P.ope.t$ fo. un.e1iste.e0 lan0s in the p.o/ince of Su.i1ao 0el No.te. Since the eAecution of the 0ee0 of sale& appellee Manuelito Palileo 6ho 6as then e5plo$e0 at +ian1a Su.i1ao 0el Su.& eAe.cise0 acts of o6ne.ship o/e. the lan0 th.ou1h his 5othe. Rafaela Palileo& as a05inist.at.iA o. o/e.see.. )ppellee has continuousl$ pai0 the .eal estate taAes on

sai0 lan0 f.o5 '(B' until the p.esent 9EAhs. DCD to DCCBD& inclusi/e:. On No/e5be. #(& '(B=& a >u015ent 6as .en0e.e0 a1ainst 0efen0ant En.i;ue T. Cast.o& in Ci/il Case No. %'%!'"8 b$ the then Cou.t of Fi.st Instance of Manila& E.anch FIF& to pa$ he.ein 0efen0antCappellant Ra0io6ealth Finance Co5pan$ 9petitione. he.ein:& the su5 of P##&!8%.!8 6ith inte.est the.eon at the .ate of '=G pe. annu5 f.o5 No/e5be. #& '(B8 until full$ pai0& an0 the fu.the. su5 of P#&#!8.%! as atto.ne$Hs fees& an0 to pa$ the costs. Upon the finalit$ of the >u015ent& a 6.it of eAecution 6as issue0. Pu.suant to sai0 6.it& 0efen0ant p.o/incial She.iff Ma.ietta E. E/iota& th.ou1h 0efen0ant Deput$ P.o/incial She.iff +eopol0o Ris5a& le/ie0 upon an0 finall$ sol0 at public auction the sub>ect lan0 that 0efen0ant En.i;ue Cast.o ha0 sol0 to appellee Manuelito Palileo on )p.il '!&'(B%. ) ce.tificate of sale 6as eAecute0 b$ the P.o/incial She.iff in fa/o. of 0efen0antC appellant Ra0io6ealth Finance Co5pan$& bein1 the onl$ bi00e.. )fte. the pe.io0 of .e0e5ption has 9sic: eApi.e0& a 0ee0 of final sale 6as also eAecute0 b$ the sa5e P.o/incial She.iff. Eoth the ce.tificate of sale an0 the 0ee0 of final sale 6e.e .e1iste.e0 6ith the Re1ist.$ of Dee0s. ! +ea.nin1 of 6hat happene0 to the lan0& p.i/ate .espon0ent Manuelito Palileo file0 an action fo. ;uietin1 of title o/e. the sa5e. )fte. a t.ial on the 5e.its& the cou.t a ;uo .en0e.e0 a 0ecision in his fa/o.. On appeal& the 0ecision of the t.ial cou.t 6as affi.5e0. ,ence& this petition fo. .e/ie6 on ce.tio.a.i. In its petition& Ra0io6ealth Finance Co5pan$ p.esents the follo6in1 e..o.s4 '. T,E COURT OF )PPE)+S ERRED IN NOT FINDING T,)T T,E DEED OF )ESO+UTE S)+E 9EF,IEIT E: )++EGED+- EFECUTED E- ENRIIUE C)STRO IN F)VOR OF )PPE++EE M)NUE+ITO P)+I+EO& *)S SIMU+)TED OR FICTITIOUS. #. T,E COURT OF )PPE)+S ERRED IN NOT FINDING )PPE++EE M)NUE+ITO P)+I+EO )S )DMINISTR)TOR ON+- OF T,E DISPUTED PROPERT-< )ND !. T,E COURT OF )PPE)+S ERRED IN NOT FINDING DEFEND)NTC)PPE++)NT R)DIO*E)+T, FIN)NCE COMP)N- O*NER OF T,E DISPUTED PROPERT- E- RE)SON OF T,E CERTIFIC)TE OF S)+E )ND T,E DEED OF FIN)+ S)+E *,IC, *ERE )++ REGISTERED IN T,E REGISTER OF DEEDS& ,ENCE& SUPERIOR TO T,)T OF T,E DEED OF S)+E IN POSSESSION OF M)NUE+ITO P)+I+EO& FOR EEING NOT REGISTERED. " )s .e1a.0s the fi.st an0 secon0 assi1ne0 e..o.s& suffice it to state that fin0in1s of fact of the Cou.t of )ppeals a.e conclusi/e on this Cou.t an0 6ill not be 0istu.be0 unless the.e is 1.a/e abuse of 0isc.etion. The fin0in1 of the Cou.t of )ppeals that the p.ope.t$ in ;uestion 6as al.ea0$ sol0 to p.i/ate .espon0ent b$ its p.e/ious o6ne. befo.e the eAecution sale is e/i0ence0 b$ a 0ee0 of sale. Sai0 0ee0 of sale is nota.i2e0 an0 is p.esu5e0 authentic. The.e is no substanti/e p.oof to suppo.t petitione.Hs alle1ation that the 0ocu5ent is fictitious o. si5ulate0. *ith this in 5in0& *e see no .eason to .e>ect the conclusion of the Cou.t of )ppeals that p.i/ate .espon0ent 6as not a 5e.e a05inist.ato. of the p.ope.t$. That he eAe.cise0 acts of o6ne.ship th.ou1h his 5othe. also .e5ains un0ispute0. Goin1 no6 to the thi.0 assi1ne0 e..o. 6hich 0eals 6ith the 5ain issue p.esente0 in the instant petition& *e obse./e that the Cou.t of )ppeals .esol/e0 the sa5e in fa/o. of p.i/ate .espon0ent 0ue to the follo6in1 .eason< 6hat the P.o/incial She.iff le/ie0 upon an0 sol0 to petitione. is a pa.cel of lan0 that 0oes not belon1 to En.i;ue Cast.o& the >u015ent 0ebto.& hence the eAecution is cont.a.$ to the 0i.ecti/e containe0 in the 6.it of eAecution 6hich co55an0e0 that the lan0s an0 buil0in1s belon1in1 to En.i;ue Cast.o be sol0 to satisf$ the eAecution. 8 The.e is no 0oubt that ha0 the p.ope.t$ in ;uestion been a .e1iste.e0 lan0& this case 6oul0 ha/e been 0eci0e0 in fa/o. of petitione. since it 6as petitione. that ha0 its clai5 fi.st .eco.0e0 in the Re1ist.$ of Dee0s. Fo.& as al.ea0$ 5entione0 ea.lie.& it is the act of .e1ist.ation that ope.ates to con/e$ an0 affect .e1iste.e0 lan0. The.efo.e& a bona fi0e pu.chase. of a .e1iste.e0 lan0 at an eAecution sale ac;ui.es a

1oo0 title as a1ainst a p.io. t.ansfe.ee& if such t.ansfe. 6as un.eco.0e0. ,o6e/e.& it 5ust be st.esse0 that this case 0eals 6ith a pa.cel of un.e1iste.e0 lan0 an0 a 0iffe.ent set of .ules applies. *e affi.5 the 0ecision of the Cou.t of )ppeals. Un0e. )ct No. !!""& .e1ist.ation of inst.u5ents affectin1 un.e1iste.e0 lan0s is D6ithout p.e>u0ice to a thi.0 pa.t$ 6ith a bette. .i1htD. The afo.e;uote0 ph.ase has been hel0 b$ this Cou.t to 5ean that the 5e.e .e1ist.ation of a sale in oneHs fa/o. 0oes not 1i/e hi5 an$ .i1ht o/e. the lan0 if the /en0o. 6as not an$5o.e the o6ne. of the lan0 ha/in1 p.e/iousl$ sol0 the sa5e to so5ebo0$ else e/en if the ea.lie. sale 6as un.eco.0e0. The case of Ca.u5ba /s. Cou.t of )ppeals = is a case in point. It 6as hel0 the.ein that ).ticle '8"" of the Ci/il Co0e has no application to lan0 not .e1iste.e0 un0e. )ct No. "(=. +i?e in the case at ba.& Ca.u5ba 0ealt 6ith a 0ouble sale of the sa5e un.e1iste.e0 lan0. The fi.st sale 6as 5a0e b$ the o.i1inal o6ne.s an0 6as un.eco.0e0 6hile the secon0 6as an eAecution sale that .esulte0 f.o5 a co5plaint fo. a su5 of 5one$ file0 a1ainst the sai0 o.i1inal o6ne.s. )ppl$in1 Section !8& Rule !( of the Re/ise0 Rules of Cou.t& B this Cou.t hel0 that ).ticle '8"" of the Ci/il Co0e cannot be in/o?e0 to benefit the pu.chase. at the eAecution sale thou1h the latte. 6as a bu$e. in 1oo0 faith an0 e/en if this secon0 sale 6as .e1iste.e0. It 6as eAplaine0 that this is because the pu.chase. of un.e1iste.e0 lan0 at a she.iffs eAecution sale onl$ steps into the shoes of the >u015ent 0ebto.& an0 5e.el$ ac;ui.es the latte.Hs inte.est in the p.ope.t$ sol0 as of the ti5e the p.ope.t$ 6as le/ie0 upon. )ppl$in1 this p.inciple& the Cou.t of )ppeals co..ectl$ hel0 that the eAecution sale of the un.e1iste.e0 lan0 in fa/o. of petitione. is of no effect because the lan0 no lon1e. belon1e0 to the >u015ent 0ebto. as of the ti5e of the sai0 eAecution sale. *,EREFORE& in /ie6 of the fo.e1oin1& the 0ecision of the Cou.t of )ppeals in C)CG.R. CV No. '%B he.eb$ )FFIRMED. No costs. SO ORDERED. is